Teraplast (TRP) Q4 2024 earnings summary

Executive summary

• Revenue increased by 34% in 2024 to RON 897.9 million, driven by higher volumes, acquisitions in Moldova, Hungary, and Croatia, and new operations at the Opal stretch film factory.

• Net loss of RON 19.6 million in 2024, compared to a profit in 2023, due to higher interest, depreciation, and ramp-up losses in new businesses.

• EBITDA was RON 52 million, flat versus 2023, with margin declining to 5.8% from 7.6% due to price pressure and non-recurring expansion costs.

• Major acquisitions included Aquatica Experience Group and consolidation of Optiplast Croatia, supporting future growth and expansion into water management solutions.

• 2024 marked the end of accelerated expansion; focus shifts to consolidation and operational improvement in 2025.

Financial highlights

• 2024 revenue increased by 34% year-over-year to RON 897.9 million, with volumes up 46%.

• Gross margin for 2024 was 36%, but EBITDA margin declined to 5.8% and net loss reached RON 19.6 million.

• Sales outside Romania rose 122% to RON 233.6 million, now 26% of total revenue.

• Flexible packaging segment underperformed, with high volumes but low prices, resulting in a larger loss than anticipated.

• Price deflation of 7% in 2024 was offset by strong volume growth and M&A contributions.

Outlook and guidance

• 2025 revenue expected to grow 12% to over RON 1 billion, with EBITDA targeted at RON 88 million (up 69% year-over-year) and a net profit of RON 5.3 million.

• Focus on consolidating recent acquisitions, operational efficiency, and profitability improvement.

• Synergies from acquisitions expected to become visible in H2 2025.

• Anticipated 9% growth in volumes and price increases due to higher raw material costs.

• Packaging segment expected to be the main driver of profitability improvement.