March 11 (SeeNews) - TeraSteel, the sandwich panels division of Romania's TeraPlast Group [BSE:TRP], said it expects its EBITDA will grow by 17% to 44 million lei ($10.3 million/9.1 million euro) this year.
Turnover is seen growing by an annual 13% to 350 million lei in 2020, TeraSteel said in a press release.
The company also said it will continue to increase its regional presence through consolidation and expansion of its distribution network.
In 2019, TeraSteel posted a turnover of 308.8 million lei, up by 18% compared to 2018, and an EBITDA of 37.6 million lei, up 42%.
The good results were achieved due to optimization processes in the acquisition of raw materials, as well as due increased use of the production capacity in Serbia. In terms of volume, sales increased by more than 30% in 2019 to 3.8 million sq m of sandwich panels and 7,500 tonnes of galvanized structures.
Exports rose by 58% year-on-year in 2019 on the back of the company's expansion on the Serbian market.
"We are promoting exports in order to reduce Romania's dependence on imports and the trade deficit that tops 15 billion euro ($17 billion). Despite the COVID-19 virus that dominates the media space and the attention of the citizens, our employees in Romania, Slovakia, Hungary, Macedonia, Poland, Ukraine, Bosnia and Herzegovina and Serbia continue to work and production, sales and distribution are proceeding at a normal pace," TeraSteel CEO Cosmin Patroiu said.
TeraSteel Romania and TeraSteel Serbia are part of the TeraPlast Group's Steel Division.
TeraPlast's shares traded 2.46% lower at 0.2780 lei on the Bucharest Stock Exchange as of 1338 CET on Wednesday.
(1 euro = 4.8167 euro)