Category: Blog

In the first semester of 2017 BILKA, leader of the roofing market, maintained its ascending trend of the previous years, reaching a turnover of RON 147 million, i.e. 54% higher compared to the same period of the previous year. This is mainly a consequence of the increase in demand and of the investment project amounting to EUR 10 million started by the company in 2014 and completed in 2016.

“The 54% increase was determined, on the one hand, by the increasing demand for roofing, which is normal if we are to consider the surveys on the construction market evolution, showing that the market is mainly driven by residential buildings, followed by office buildings and commercial areas. Moreover, there is an increase in the number of construction permits for residential buildings, and a decrease in renovation works. Following these permits, new constructions will appear and we will have to cover them. On the other hand, Bilka’s growth is due to investments from previous years, for the development and diversification of our range of products. This year’s figures also reflect the production lines started last year, that were mandatory so that we can comply with the demand. We estimate that this growth will last till the year-end”, stated Horațiu Țepeș.

Following the EUR 20 million investments made during its 10 years of activity, Bilka continues to grow its business, while also relying on exports.

Exports up by 33%

Having consolidated its top position on the national roofing market in the last years, the company accessed the neighboring countries, as well. In 2016, Bilka exported complete roof systems in the amount of RON 27 million. Export sales went up by 33% in the first half of 2017 compared to the same period of the previous year.

“Given the sales in the first part of the year, when we recorded 33% more on export, we estimate we will keep this growth for the end of the year. We see great potential in the foreign markets and an increased interest in our products. This is also due to the fact that we currently have the largest roof systems factory in Eastern Europe. Given the investments made, we now have the necessary production means and logistics to become a player on the foreign markets”, declared Horațiu Țepeș.

Foreign companies choose the roofs manufactured in Brașov, not only for the quality and competitiveness of the company’s products and services but also for the fact that they come along with the know-how provided by the manufacturer.

“In Romania, we have gone beyond bulk selling, as we have also focused on market development and education, and on the development of our partners. Not all our partners have a well-defined business strategy, a clear vision of their business objectives or of their development possibilities. This is where we come in and suggest new business directions. This has brought added value and we follow the same strategy abroad as well, where we already see the desired outcome. We do this because we want a sound business and we know that this requires a sound market and strong partners”, said the entrepreneur.

2017 ‒ premium products on the increase

Official studies in different fields show that Romanians have gone in favor of higher-value products in the past two years, which has determined growth in the consumption of premium products. This has been noticed with respect to current goods, but it equally applies to consumer durables, such as roofs. During the past 6 months, Bilka has sold 25% more premium products, as compared to the same period last year.

“The increase in premium product sales is mainly generated by the growing weight of such products in our portfolio. We identified this market need two years ago when we met clients that would rather have thicker products and special-finishing products, which they could not find on the market. This was an underdeveloped segment on the roofing market. In 2014, our portfolio included a special finishing, with technical specifications superior to those existing on the market at that time. The demand has constantly increased since then, and a new finishing, GrandeMat, was launched this year. This is a Bilka product available in 8 different color shades. We are glad to see a growing interest in top products and we will continue to support this trend”, stated Horațiu Țepeș.

INFO

BILKA’s turnover in 2016 amounted to RON 270 million. At present, the BILKA factory covers an area of 45,000 sqm, divided into production halls, warehouses, and offices. In 10 years of activity, BILKA covered over 150,000 houses. The production lines are fully automated, relying on the latest technologies available worldwide. In 2016, BILKA sold its products all over the country via more than 500 stable dealers. The company’s distribution network covers the entire Romanian territory.

BILKA, the leader on the roofing market, ended 2016 with a turnover of more than EUR 60 million, which was 41% higher compared to EUR 43 million in 2015. In 2016, the company was considered for the third consecutive year as the largest consumer of pre-painted steel sheets in Romania, purchasing over 63,000 tons.

“Last year’s results are the immediate outcome of the 10 million euro investment plan launched in 2014 and completed in 2016. Following this project, we purchased and integrated a new platform of 27,000 sqm in our production flow, we installed 25 new production lines, we launched 3 new models of metal tile and thus we completed our investments related to the residential division. All these improvements are reflected in the 2016 turnover, which grew by 41%”, stated Horațiu Țepeș, the owner of BILKA.

2017 – consolidation and optimization

After the completion last year of the development process with respect to the residential sector, the main objectives for 2017 are: making use of the EUR 13 million investments executed throughout the company’s 10 years of activity in order to increase the production capacity and the range of products, rendering the factory’s activity more efficient and increasing the weight of exports in total business volumes.

“Our focus this year is to make our investments profitable; we have new production lines and products below one year of functioning and their impact on sales will start to be noticed only this year. At the same time, exports continue to be an important matter for us. In 2015, they represented 7.3% of the company’s turnover, reaching 10% in 2016. We see great potential in the foreign markets; therefore we plan to encourage exports this year. Given the investments made, we now have the necessary production and logistic means to become a player on the foreign markets”, declared Horațiu Țepeș.

Another relevant aspect of our strategy for 2017 is the support and expansion of the network of 500 dealers with whom the company cooperates at present.

“BILKA helps other 500 businesses grow. We are responsible for the development of more than 500 partners that represent us, and our growth is positively reflected in their business as well. This year, we will continue to offer know-how support to our partner dealers, but also services and products that help them evolve”, stated Horațiu Țepeș.

A new investment program is pending, dedicated to the industrial sector – the production of corrugated metal sheets, insulated panels, industrial profiles, structural liner trays, and turnkey halls. But the deployment of this project depends on the acquisition of new production spaces.

“Now, that we have ended the development stage of the residential division, it is the right moment to make new investments for the industrial sector. We have the necessary financial resources for this project, but the available property near the Bilka factory, notably the former Rulmentul platform, now in ruins, is owned by the state and we depend on the local authorities. If we succeed with the rental of the requested property, we will commence the investments; otherwise, we will have to put this project on hold. We go on with the proceedings in order to expand our activity on the neighboring lands, but in the future, we do not exclude the option of purchasing properties outside the city”, mentioned Țepeș.

The roofing market in 2016 – the highest level ever recorded in Romania

The roofing market increased by 5-10% over the previous years, exceeding last year the threshold of 32 million square meters, for the first time since 2008. In 2016, the market reached the highest level ever recorded in Romania, notably 35 million square meters. This result is due to the higher consumption and the need for new residential estates or refurbishments on the one hand, and to the investments in this sector during the last years on the other hand. “We expect a 10% market increase during this year, as well. First of all, we count on the contribution of our company to market growth. A market cannot develop unless its main players invest in innovation, technology, and new products. If the market growth recorded in 2016 was mainly fuelled by that of BILKA, things will most probably follow the same trend this year, as well. Secondly, we rely on the market trend in the recent years, on the official surveys pointing to the increase up to 5% of the construction market in 2017, with a 10% increase in the residential sector; the number of building permits increased by 5% last year only in the urban area. The statistics encourage us to be optimistic and to see 2017 as a year of considerable growth on the roofing market”, mentioned Horațiu Țepeș.

INFO

BILKA’s turnover in 2016 amounted to RON 270 million. At present, the BILKA factory covers an area of 45,000 sqm, divided into production halls, warehouses, and offices. In 10 years of activity, BILKA covered over 150,000 houses. The production lines are fully automated, relying on the latest technologies available worldwide. In 2016, BILKA sold its products all over the country via more than 500 stable dealers. The company’s distribution network covers entire Romania.

BILKA, the leader on the roofing market, recorded a turnover of EUR 45 million in the first 9 months of 2016, that is 44% higher versus the same period last year.

These results are mainly due to the EUR 10 million investment plan launched in 2014 and completed in 2016. Based on this project, BILKA installed 15 new production lines for the manufacture of complete roofing systems. It now counts 250 employees, versus 150 last year.

“We managed to maintain a constant growth pace of 40% over the last years, and this was mainly due to the development and investment plan implemented between 2014-2016. Following this project, we purchased and integrated a new platform of 27,000 sqm in our production flow, we installed 15 new production lines, we launched 3 new models of metal tile and thus we completed our investments related to the residential division. The outcomes of this project are reflected in the company’s turnover which almost doubled, from EUR 23 million at the end of 2013 to EUR 45 million by the end of the 3rd quarter of 2016. For the year-end, we expect the same growth as in the first 9 months, which will place our company among the top 100 Romanian companies”, declared Horațiu Țepeș, the owner of BILKA.

2018 – EUR 100 million potential

This year, after completing the expansion for the residential sector, the company targets new investment and development initiatives that may lift its business up to EUR 100 million in the next 2 years. “Starting with 2017, we plan to launch a new investment plan for the industrial sector – the production of corrugated metal sheets, insulated panels, industrial profiles, structural liner trays, and turnkey halls. At present, the industrial sector stands for 12% of the total production volumes and we intend to raise it to 40% in the forthcoming years. With respect to this project, we budgeted and planned investments of EUR 12 million, but we also need new production spaces.

The available areas near the plant belong to the state and we have already filed a rental request with the authorities. If we succeed with the rental of the requested property, we will commence the investments so that in two years we reach a turnover of EUR 100 million; otherwise, we will have to put this project on hold. We face certain difficulties regarding this matter, but we hope that the authorities will see the opportunities instead of obstructing a 12 million euro investment”, stated Horațiu Țepeș.

The roofing market in 2016 – the greatest ascension in the last 8 years

The official surveys reveal that the total roofing market of 2015 represented 31 million sqm, of which 65% (20 million sqm) metal tiles, 8% concrete tiles and 13% ceramic tiles; the remaining percentage is represented by other types of roofing.

“The residential and industrial projects initiated during the past two years are also reflected in the roofing market development. Considering that the new houses and apartments, built after 1990, represent only 11% of the residential estate in Romania, the development of this sector is necessary and likely to continue in the following years”, declared Horațiu Țepeș. For the end of 2016, the company foresees a 10% increase in the roofing market. 70% of the sold roofing systems are metallic, and they are expected to exceed this figure within three years.

INFO

BILKA’s turnover in 2015 amounted to EUR 43.1 million. At present, the BILKA factory covers an area of 45,000 sqm, divided into production halls, warehouses, and offices. The factory released only last year more than 5.5 million square meters of metal tiles and more than 18.2 million square meters during its 9 years of activity, which means 100,000 roofs. The production lines are fully automated, relying on the latest technologies available worldwide. In 2015, BILKA sold its products all over the country and abroad via more than 500 stable dealers. The company’s distribution network covers entire Romania.

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.

INFO

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.

BILKA, leader of the roofing market, recorded a turnover of RON 69 million in the first 6 months of 2015, that is 55% higher than the same period of last year. According to the company estimates, 1 of 4 metal roofs sold in the first half of the year was bought from BILKA.

“Our business in the first 6 months of 2015 was equivalent to the cumulated business during the first four years (2007-2010). This result comes as a consequence of the maturity of investments of over EUR 9 million made in the 8 years of business. However, an important contribution to business growth was the company’s internal infrastructure, and the management system which efficiently managed the existing resources and capitalized the investments made. I believe that without this, the production capacity, the investments and the range of products and services are not enough on one competitive market”, says Horațiu Țepeș, owner of BILKA.

New production lines and metal roofing tile models

At the end of June, the company set up a new production line, doubling the production capacity for the BALCANIC metal roofing tile. This investment is part of the investment program started at the beginning of last year, amounting to about EUR 7 million and will be completed in 2016.

“We plan to process any order in just 24 hours. Therefore, in order to hold on to this commitment, as demand grows, we need to increase our production capacity. In the second half of the year, we will install another 7 new production lines and we will launch 3 new models of metal roofing tiles. The diversification of the product range will lead to the growth of the BILKA business as well as to the growth of the whole roofing market. The investments are supported by our own funds and by bank loans and over 3 million RON from European funds”, says Horațiu Țepeș. After a 55% increase in turnover and investments made to expand production, the company aims to acquire new land.

“In our field, an increase of 55% brings, in addition to the need to increase the production capacity, the need to increase the storage capacity for the raw material. In this regard, we aim at acquiring new land. This year, the concession or purchase of the 13,000 sqm land in the immediate proximity of the factory, on the public domain, becomes mandatory for the proper functioning of the production flow”, states Horațiu Țepeș.

The roofing market in 2015: potential growth by 15%

According to internal studies, the metal roofing market recorded an average increase of 10% in the first half of the year. In 2015, roof sales are driven mainly by renovation works, but there is a revival in both new residential and industrial works.

“Our forecasts are mainly based on the market trend in the first half of the year when demands for roofing have increased unexpectedly. The demand for new homes, the state aid in purchasing new housing facilities, the willingness of banks to support builders and individuals at the same time, together with the producers’ efforts to increase the market, are some of the elements that add a boost to the roofing market. Also, this year we will also feel the positive effects of the projects completed in the field of agriculture under European funding programs between 2007 and 2014. Once these investments mature, they generate new opportunities and the financial resources necessary for the development of this industry. They are the reasons for a significant increase in the roofing market and, implicitly, in BILKA business”, says Horațiu Țepeș.

INFO

BILKA, the 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. In 2014, BILKA sold its products all over the country and abroad via more than 500 stable dealers. The company’s distribution network covers the entire Romanian territory.

BILKA, leader of the domestic roofing market, has started last year an investment plan with deadline in 2016 amounting to about EUR 5 million. Earlier this year, the company has increased its budget by EUR 2 million. The budgeted amount is distributed to the development of products marketed in the industrial and residential sectors.

The investment plan consists of two phases. The first phase started and ended last year, and amounted to EUR 3 million. The amount was directed to increasing the production capacity for the existing products in the portfolio and for the purchase and renovation of the Romlag Brașov production halls, thus reaching a total area of approximately 45,000 sqm used for storage, production lines, and offices.

The second phase, started this year, amounts to EUR 4 million and aims at increasing and especially diversifying the production. Eight new production lines for metal roofing sheets, rainwater system elements, and roof accessories will be installed this year at the BILKA plant.

“Increasing the production capacity and diversifying the product range are important steps that will bring added value to the market and will contribute to new financial performance for BILKA. With the decisions and investments made in 2014-2015, we provide our customers with a complete roofing system, a wide range of products and colors, transport, assembly, buying advice and after-sales support. We are therefore talking the client into renovating the roof, instead of using patches to repair it. Our current actions will lead to the future growth of the domestic roofing market, without waiting for governmental measures and projects meant to reinvigorate the market”, says Horațiu Țepeș.

Investments are supported by the company’s profit, European funds, and bank loans. In addition, this year the company received state aid worth RON 1 million, and European funds amounting to RON 3.5 million.

“Funding was requested under the provisions of the state aid scheme to support investments that promote regional development through job creation. This means that we will generate 30 new jobs as a result of the investments, and the state aid obtained will cover, for two consecutive years, 50% of the total wage costs for the 30 new employees. A welcomed initiative that encourages Romanian entrepreneurs to create new jobs”, says Horațiu Țepeș.

Focus on export

The production at the plant in Brașov last year went up to 96% on the domestic market, with exports accounting for only 4%. For 2015, the company is considering expanding and increasing the export channels.

“As a result of our investments, we have competitive products, the means and the resources needed to focus more on exports. This year we expect an increase of exports in the total turnover by a few percents. This year, BILKA products will mainly be found in former Soviet countries or in Slovakia, Germany, Austria, Hungary, Bulgaria”, says Horațiu Țepeș.

The roofing market in 2015 ‒ potential growth by up to 15%

According to the company’s estimates, in the first three months of the year, the roofing market has grown by about 5-8%.

“The positive trend of the market seen in the first quarter of this year, when BILKA sales grew by 38% compared to the same period last year, allows us to be optimistic and see for the end of the year an increase in the roofing market by 10%. A positive evolution of agriculture and favorable weather conditions could lead to a 15% increase in the market. There is great demand for housing and great potential on the market waiting to be capitalized. I think that the gap to what is happening in the West must be fought against, and we as manufacturers, through investments made to increase product and service quality, will have a significant contribution to market growth”, said Horațiu Țepeș.

BILKA’s turnover at the end of 2014 increased by 29%, with a market share of 24%

BILKA, leader of the roofing market, ended 2014 with a turnover of more than RON 134 million, 29% higher compared to 2013. Last year, BILKA produced and sold over 4 million square meters of metallic roofing, and the company became also the largest consumer of pre-painted steel sheets in Romania, purchasing over 30,000 tons.

Metal roof tiles remain a top-selling category, accounting for 54% of the total sale volumes. It is followed by accessories, corrugated sheets, and insulated panels, representing almost 31%, while rainwater systems (gutters and downspouts) represent 15%. Regarding colours, last year the company recorded an increase in dark shades, i.e. brown, chocolate brown or black, representing approximately 50% of the sales volume, 2 million sqm.

Horațiu Țepeș, the owner of BILKA, states: “We think 2014 is the best year in Bilka’s history. At the end of this year, drawing the line, we have: financial performance well above the average of the players on this market and according to the objectives set at the beginning of the year, investments of EUR 3 million, new halls stretching over 27,000 sqm, two new production lines, and about 26,000 roofed houses”.

According to internal estimates, in 2014 BILKA also saw an increase in the share of the metal roofing tile market. In 2013 it held 21% of the domestic metal roofing tile market, and in 2014 it reached 24%.

“2014 was a difficult year for the business environment, with a lack of predictability and insolvencies. I knew, from the very first year, that the company’s evolution must be influenced to the greatest extent by the internal business strategy. Therefore, during 8 years we have invested over 9 million Euros and the main objective was to achieve an optimal production capacity, a high-performance logistics system, a wide range of products and a country wide distribution. Another important aspect for the company’s evolution is the efficiency of the whole team and the fact that we do not work looking at the time, we work according to well-established goals and we are aware that, in order to maintain our leader position, we must work harder than the day before. Investments and hard work are the keys to our performance”, says Horațiu Țepeș.

2015 ‒ 8 new production lines

In 2015, an important direction in the company’s business strategy is to keep going with the investment plan started last year, amounting to EUR 5 million. It first targets production growth and diversification.

“In 2015, we shall continue our development plans. We need to cover the production halls purchased last year, using production equipment, and we have budgeted investments for eight new production lines for metal roofing tiles, elements of the rainwater system and roof accessories. Once these machines are installed, we will launch new products. Our business strategy is a premise that allows us to consider that in 2015 we will remain number one on the market”, says Horațiu Țepeș.

Increasing the production area continues to be part of the company’s development strategy for the coming years. In order to reach the optimal and necessary area for the budgeted investments in the next years, Bilka is considering purchasing a new surface of 15,000 sqm of land in the proximity of the factory in Brașov. One of Bilka’s goals on the medium term is purchasing a local competitor.