Promateris posts a record revenue growth of 62% and an EBITDA increase of 129% in 2021

Deniza Cristian 01/03/2022 | 11:39

Promateris (BVB: PPL), a Romanian industrial group and leader in the CEE region in producing biodegradable and compostable packaging, reports a consolidated turnover of 37.8 million euros in 2021, up 62% from the same period last year. The group, including the distribution company Biodeck, recorded a consolidated EBITDA of over 6 million euros, 129% more compared to 2021. At the same time, the company registered a net profit of 3.7 million euros, an increase of 405% compared to 2020 and 286% vs. 2019. 

 

“The Promateris Group continues the accelerated growth trend from the last years, closing 2021 with strong financial results and increases of double, even three digits, in all performance indicators. One of the indicators that we have recently started to follow, the net profit, had an increase of 405% last year. The profit made is an important source of financing for the company’s development plans. Our investment plan has proven to be an ambitious and successful one, confirming that both our business model and our strategy enable accelerated growth for our group. We intend to continue investments and we have regional development plans for compostable packaging. In the same time, we are analysing investment opportunities in other types of green projects”, Tudor Georgescu, CEO Promateris. 

The consolidated results were positively influenced by the investments carried out in 2021, such as the production capacity increase for the biodegradable and compostable packaging segment, but also by the operational efficiencies achieved at group level. In the same time, the bioplastic recycling line has significantly contributed to margin increase, but also to reducing the environmental impact. In 2021, Promateris recycled 100% of its biodegradable industrial waste, re-introducing everything back in production.  

Promateris has continued to produce biodegradable and compostable packaging, consolidating its portfolio of domestic and international customers, leading to solid financial results in 2021. The company is currently one of the top five manufacturers of compostable packaging in Europe and aims to develop its current production capacity in order to strengthen its position as a regional leader. In 2021, Promateris had a 150% increase in biodegradable and compostable packaging exports, and this will continue to be a priority for our group in 2022.  

Promateris aims to continue development investments, by increasing production capacity, but also by diversifying the product portfolio. The company analyses the opportunity of several M&A projects, in order to support the increase of EBITDA for the 2023-2025 period. The goal for 2025 is to reach a turnover of 100 million euros. 

Development projects from non-reimbursable grants 

  • The Green Europe Project. Efficient technologies for the production of innovative and sustainable packaging – In 2021, Promateris completed the EUR 2.5 million investment project in the Buftea factory, for the production of biodegradable and compostable packaging. The investment was co-financed by grants from Iceland, Liechtenstein and Norway, under the “SME GROWTH Romania” program. Promateris won a grant of 950,000 euros. 
  • The Bio-based products to decarbonize the local economy – in 2021, Promateris began investments in the development of a new division, Bio Compounds, which aims to produce raw materials from partially renewable sources, used for the production of biodegradable and compostable packaging. Promateris is thus consolidating its position as a regional leader, building the largest integrated bio-based production capacity in Central and Eastern Europe. The investment project has a value of over 1.65 million euros. Promateris won a € 744,000 grant in the competitive process launched by Iceland, Liechtenstein and Norway through the EEA financial mechanisms and the Norwegian Grants 2014-2021, under the “SME GROWTH Romania” program. 
  • Electric UP project – in November 2021 Promateris won a grant of 100,000 euros, with the aim of installing photovoltaic panels at its factory in Buftea. This is the company’s first step in the transition of using renewable energy for production purposes.  
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