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Introduction & Market Context
TeraPlast (BVB:TRP) presented its Q1 2025 financial results on May 14, 2025, revealing strong growth driven by international expansion and strategic acquisitions. The Romanian plastic products manufacturer has successfully leveraged infrastructure projects in its domestic market while significantly expanding its presence across European markets.
The company’s performance comes amid solid demand in Romania, supported by water and sewage infrastructure projects financed through EU funds (PNRR and PDD) and government initiatives like the Anghel Saligny Program. Meanwhile, TeraPlast’s strategic internationalization efforts have dramatically increased its footprint beyond Romania.
Quarterly Performance Highlights
TeraPlast reported impressive Q1 2025 results, with consolidated revenue reaching 249.2 million LEI, a 41% increase compared to Q1 2024. This growth was accompanied by a 76% surge in EBITDA to 21 million LEI and an improvement in EBITDA margin to 8.4% from 6.7% in the same period last year.
The company achieved a notable turnaround in profitability, posting a net profit of 1.2 million LEI compared to a 2.5 million LEI loss in Q1 2024. This improvement came despite challenging conditions in some segments, including raw material price volatility in the packaging market and seasonality impacts on the Windows segment.
As shown in the following chart of TeraPlast’s Q1 2025 group results:
The company’s volumes increased by 25% to 29,286 tons, while maintaining a stable gross margin of 36%. One of the most striking developments was the dramatic increase in international sales, which tripled in value year-over-year to represent 38% of total turnover, up from just 17% in Q1 2024.
Detailed Financial Analysis
TeraPlast’s revenue growth of 40.9% can be attributed to several factors. As illustrated in the following breakdown:
Volume increases contributed 15.8% (28 million RON) to revenue growth, while acquisitions – specifically the Wolfgang Freiler Group and Optiplast – added 27.1% (47.9 million RON). These positive factors were slightly offset by price changes, which reduced revenue by 2.0% (3.5 million RON) due to lower production costs.
The company’s segment performance shows the Installations business remains dominant, accounting for 72% of revenue in Q1 2025 (up from 69% in Q1 2024), followed by Granules at 14%, Packaging (NYSE:PKG) at 10%, and Windows at 4%. The following chart illustrates this revenue distribution:
TeraPlast significantly outperformed its Q1 2025 budget across key metrics. Revenue exceeded budget by 21%, while EBITDA surpassed projections by 72%. The company’s detailed budget comparison reveals:
From a balance sheet perspective, TeraPlast reported total assets of 1,153.6 million LEI as of March 31, 2025. The company’s net debt position increased slightly to 306.8 million LEI, though management expects this to decrease below 4x EBITDA by year-end due to continued EBITDA growth.
Strategic Initiatives & Outlook
TeraPlast’s growth strategy has centered on international expansion and strategic acquisitions. The company has successfully integrated recent acquisitions, including the Wolfgang Freiler Group and Optiplast Croatia, which have significantly contributed to its revenue growth and geographical diversification.
The company’s current structure includes several key subsidiaries and associated companies that span various product categories:
Looking ahead, TeraPlast has set ambitious targets for 2025, projecting revenue of 1,005.9 million LEI (a 12% increase over 2024) and EBITDA of 88 million LEI (a 69% increase). The company expects to achieve a net profit of 5.2 million LEI for the full year, with an EBITDA margin of 8.8%.
Forward-Looking Statements
After its recent expansion phase, TeraPlast is now focusing on consolidating its businesses, expanding in existing markets, and improving profitability. Management expects synergies from new subsidiaries to produce visible effects starting in the second half of 2025.
The company’s quarterly budget for 2025 shows stronger performance expected in Q2 and Q3, with more moderate results in Q4. Volume growth is projected to reach 9% for the full year, approaching nearly 120,000 tons.
For 2025, TeraPlast plans investments of 64.7 million LEI, with 9.7 million LEI already paid in the first quarter. The company also expects to receive subsidies worth 6.5 million LEI for its investment in a photovoltaic power plant.
The 12% revenue growth projected for 2025 will primarily be supported by improved performance in the Packaging segment through enhanced profitability, operational efficiency, and the consolidation of Optiplast Croatia. Moderate revenue increases of 3-6% are expected in traditional segments, with significant EBITDA improvements anticipated from both the Packaging and Installations segments.
As TeraPlast continues to execute its international expansion strategy, the company appears well-positioned to build on its strong Q1 2025 performance throughout the remainder of the year.
Full presentation:
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