News

Cumulative business of RON 517 million and EBITDA 48% above the 2023 value

• ROCA Industry, the Romanian holding specialized in the production of construction materials, reports in the first 9 months of this year a turnover of 517 million RON, at a cumulative level for the companies in the portfolio, increasing by 9% compared to 2023
• During this period, cumulative EBITDA exceeded by 48% the level recorded in January-September 2023.
• INS data shows a more than 23% decline in the residential construction market in the first 8 months of 2024 compared to 2023.

Bucharest, November 15, 2024 – ROCA Industry, the first Romanian industrial holding specialized in the production of construction materials and listed on the BVB main market, reported for the first 9 months of 2024 a cumulative turnover of 517 million RON, with almost 9% compared to the same period of 2023, despite the drop of over 23% in the residential construction index for the first 8 months of this year.

In the first 9 months of the year, companies within the holding registered a cumulative EBITDA value of 59.5 million RON, indicating an increase of 48% compared to the similar period, a result that reflects the efficiency of the optimization measures and the alignment strategy of operations as well as the efforts of commercial teams.

Considering the major development stakes of the local industrial sector in the coming years, the holding applies a growth strategy focused on three essential areas: investments for the future, transformation and digitization initiatives, as well as strategic focus on research and development. This approach highlights the holding company's ability to generate value for the entire managed portfolio.

ROCA Industry achieved these results in an economic context with multiple challenges, with the index of residential construction works registering a decline of more than 23% in the first 8 months of 2024 compared to the same period last year, according to INS data. In the first 9 months of 2024, the number of building permits for residential buildings increased by 3.3% from 2023, reflecting a slight recovery from the steep 23.5% decline in 2023 (9M) compared to 2022, but the current level remains significantly below that of two years ago, highlighting a pronounced base effect and an incomplete sector recovery.

“The growing results reported at the end of Q3 2024 confirm our strategic direction, demonstrating that we are applying the valuable lessons learned along the way. In a market context that remains complicated, ROCA Industry is gaining market share and profitability, which validates the success of our holding model based on sustainable growth and continuous efficiency. We have developed a clear strategy together with the management teams, operationally focused on investments for the future, digital transformation and emphasis on research and development, key directions to develop regional champions", said Ionuț Bindea, CEO of ROCA Industry.

Growing performance for ROCA Industry portfolio companies

BICO Industries (60% ownership), leader in the production of fiberglass mesh in Eastern Europe and the third largest producer in the EU, reports a turnover of 173.4 million RON, up by 11.7% compared to 9L 2023. EBITDA reached the value of 16.9 million RON, four times higher, maintaining the advance acquired in the first half of 2024. From from a commercial point of view, by increasing sales on the domestic market, as well as operational optimizations that generated increased commercial margin, it faced the challenges generated by the aggressive decrease in demand at the level of the European Economic Area.

EVOLOR (100% ownership) consolidates its position as one of the biggest players in the paint and varnish production industry, reaching a turnover of 84.6 million RON, up by almost 6% compared to the same period in 2023. As as a result of the increase in marketing expenses, the effect of which is estimated to be observed in the sales of the following period, but also of the salary expenses, EBITDA reached a value of 10.1 million RON in Q3 2024, 27% below the level of 2023, an exceptional year for the company. The company's sustainable growth continues with the completion of the operationalization of the decorative plaster department in the new factory on the Oltchim platform, which will increase production capacity by 15%.

With the ongoing merger process, Eco Euro Doors (100% ownership), the largest Romanian manufacturer of doors for residential construction and Workshop Doors (100% ownership from October 2024), the second manufacturer on the interior door market in the region, will form a consolidated regional player. Together, these two companies generated a turnover of 79.5 million RON, slightly down compared to 9L 2023, and an EBITDA of 18 million RON, 37% above last year's level, an evolution also due to the benefits generated by the synergies created between the two companies and the continuation of EED's cost optimization efforts.

DIAL (100% ownership), one of the largest producers of metallic wire products, recorded a 34% increase in turnover, reaching 55.1 million RON. And the operational performance maintains the growth trend from the first part of the year, with an advance of 87% in 9L 2024, the EBITDA value reaching 6.3 million RON. All these results were possible mainly on the background of the increased sales volume on most product categories as a result of the implementation of the commercial strategy by launching new products, maximizing existing channels and identifying new sales channels, implicitly through the development of the export area , the correlation of production with the needs identified in the sales area and optimizations brought by the purchasing department.

ROCA Industry, a holding company majority owned by the private equity company ROCA Investments, represents the first strategic pillar dedicated to generating value by consolidating and modernizing Romanian production capacities, with the aim of increasing the competitiveness of the national industry.

ROCA Industry owns, directly and indirectly, a number of 8 significant players in the construction field: BICO Industries (the first and largest national manufacturer of fiberglass mesh and the only domestic manufacturer of fiberglass reinforcement), EVOLOR (one of the largest players in the paint and varnish production industry), ECO EURO DOORS (the largest Romanian manufacturer of doors for residential construction), WORKSHOP DOORS (the second largest Romanian manufacturer of doors intended for residential construction), DIAL (manufacturer of metal wire products), ELECTROPLAST (one of the most important manufacturers of electrical cables), as well as fiberglass manufacturers Terra and Iranga, through BICO Industries.

For a faithful presentation of the evolution of the companies owned by the ROCA Industry holding and for comparability with previous periods, this press release presents the cumulative results of the productive companies. The differences between the 2 approaches are as follows:

• Within the consolidated financial statements, according to the legislation in force, the performance of each company included in the holding is taken into account from the moment of acquisition, without including previous achievements. Consolidation is carried out taking into account the shares held by the holding company in each company. Thus, the performance of Workshop is found in the consolidated financial statements from February 2024, and the performance of ELP is incorporated for the entire period, while in the financial statements related to Q3 2023 its results are included from July. Additionally, following the increase of the share capital in BICO from the end of July 2023, ROCA Industry has reduced its holding from 70% to 60% of this company.
• Cumulative results aim to present financial information in a format that allows comparability with the previous year, without being affected by the impact of the percentage of ownership and the date of acquisition. They are relevant because they present the activity of the companies themselves, without the influence of corporate events. Cumulative results sum up the individual performance of each company over the entire reporting period, regardless of the moment of its acquisition and without considering the share of ROCA Industry's holding in the share capital of each company.