BILKA, leader of the roofing market, recorded a turnover of EUR 140 million in the first 9 months of 2015, that is 40% higher compared to the same period of last year. Over 4.3 million square meters of metallic roof tiles were manufactured and marketed during this period by BILKA. In the first 9 months of this year, the company succeeded in exceeding in volume and value the performance registered during 2014 when its turnover was of RON 134 million.
Horațiu Țepeș, the owner of BILKA, stated: “There are three main factors that contributed to the growth of BILKA during this period of the year. Firstly, the investments made by the company, secondly the increase in the volume of constructions and implicitly the demand for roofs and the change in consumer behavior of customers. This year it was interesting to find that we had considerable demands throughout the year so that the seasonality period extends from one year to the next. With over 50% of our roof sales, the renovation works remain our main sales driver. However, there is a revival in both new residential works and industrial works, that will be constantly mirrored by the roofing market. If this trend continues, we will most likely end the year with more than 5 million square meters of manufactured roofing and 40,000 tons of pre-painted processed steel”.
Investment plan amounting to EUR 10 million
BILKA has started last year an investment plan with deadline in 2016 amounting to about EUR 7 million. In the second half of this year, the company increased the budget to EUR 10 million.
During 2014 and 2015, total investments reached over EUR 7 million. After this investment, our portfolio was enriched with 13 new production lines for metal tiles, rainwater systems, and roof accessories, and with an area of over 27,000 sqm of land for storage, production lines and office spaces. In 2016, budgeted investments are up to EUR 3 million and mainly refer to the purchase of new production lines necessary to close the series of investments for residential products.
“The unexpected rise in sales, the opportunities identified on the market this year and the positive forecasts for the coming years are the factors that have made us rethink our strategy, accelerate the pace of the investment process and raise the investment plan to EUR 10 million. The immediate adaptability of the company to the market conditions and the total investments of over EUR 13 million made in the 8 years of activity were the main factors that led us to the top of the roof manufacturers. In our field, an average annual growth of 30-40% can be maintained only with constant investments”, added Țepeș.
The roofing market in 2015 at the level of 2008
According to official studies, in 2008, the total roofing market amounted to more than 32 million sqm, but in 2009 it collapsed to 27 million sqm. In recent years, the market has seen small but steady increases. The company estimates that in 2015, the market may reach a volume close to the level of 2008.
“Our forecasts are mainly based on market developments in the first 9 months of the year when the demand for roofs had increased unexpectedly. I believe that an important contribution to this growth was the lasting optimism since the beginning of the year, and of course, the economic growth which has a positive effect on consumption. The business environment and especially the construction industry have been dominated by new investments, new projects, and massive employment. Also, there were periods during the year when banks granted loans to individuals, 50% above historical levels and with historical minimum interest, which gave consumers the financial resources needed to carry out postponed renovation works. Based on all these premises we estimate an increase in the market for the end of 2015 by about 10 percent”, said Horațiu Țepeș.
BILKA, manufacturer of roof systems, was established in 2007. BILKA’s turnover in 2014 amounted to RON 134 million. At present, the BILKA factory covers an area of 45,000 sqm, divided into production halls, warehouses, and offices. The factory released last year more than 4 million square meters of metal roofing sheets. The production lines are fully automated, relying on the latest technologies available worldwide. BILKA sells its products all over the country via more than 500 stable dealers. The company’s distribution network covers the entire Romanian territory.