TeraPlast, one of the representatives of industrial sector in BET index with market cap of EUR 471m, has published its preliminary 2021 results. The company announced a 55% increase in turnover, a 50% increase in net income and 36% increase in EBITDA YoY.
TeraPlast one of the largest PVC processors in the Eastern EU has published its preliminary 2021 results. As it is one of the newest members of the BET index (joining the Index in March 2020), we decided to bring you an overview of their 2021 results.
In the report, the Company has announced substantial double-digit growth across all KPIs (Key Performance Indicators). The Company announced a 55% increase in turnover to RON 615m, which is more than 55% higher than 2020 and almost double compared to 2019.
The Company’s EBITDA increased to RON 74.2m, an increase of 36% YoY, which means that its EBITDA margin reached 12.1%. These results were positively influenced by the commissioning of scheduled investments (expansion of the capacities of the Installation Division and TeraPlast) but were also slightly slowed down by non-recurring costs related to the ramp-up of new investments, which amounted to RON 3.7m.
TeraPlast also had an outstanding performance on the foreign market, where the value of exports doubled compared to the previous year. This means that the share of exports in total turnover stood at 14.4% (which is in line with the 15% target announced at the beginning of 2021).
TeraPlast’s net profit increased by 50% YoY to RON 44.6m, due to the excellent results across all segments.
It should also be noted that the Company currently has a market cap of RON 2.33bn (EUR 471.4m), constitutes around 2.5% of the BET index, and has during 2021 paid out dividends in the amount of RON 0.13/per share, representing a dividend yield of 9.7%. The Company has also recently adopted a share buyback program (December 6th, 2021), for the repurchase of 7.5m shares (with a minimum market price equal to the stock exchange’s market price at the time of the repurchase and a maximum price set at RON 2/share).
2022 Budget
In 2022, the Company aims for strong growth, stemming from the increase in turnover, expansion of production capacity in its installation, compounds, and recycling segments. At the same time, they plan to invest EUR 11m in the production of stretch films, as well as expand their business further through M&A projects, which will lead to an EBITDA of RON 130m (+75% YoY). Lastly, the Company aims to further increase its exports, with a goal of a 40% increase in 2022.
