ALRO Group registered a consolidated turnover of RON 1.7 billion in H1 2024

Mon, 08/12/2024 - 18:52

Slatina, 12 August 2024– ALRO S.A. (BVB: ALR, “the Company” or “ALRO”), one of the largest vertically integrated aluminium producers in Europe, measured by production capacity, announces today its consolidated and separate financial results for the six months ended 30 June 2024. The Group’s turnover increased to RON 1.697 billion in H1 2024, compared to RON 1.559 billion in H1 2023, as a result of improved LME quotations and higher sales of value added aluminium products. The Group registered a net profit of RON 8.4 million in H1 2024, compared to a net loss of RON 164 million in H1 2023.

“The investments we made in technology, operational efficiency, portfolio diversification and capturing new markets helped us even better capitalise the upturn that the aluminium  market registered in the first six months of this year, with direct effect on the final result. Our focus on portfolio diversification, with accent on high and verry high added-value products translated in a record increase of almost 60% in the production for flat rolled aluminium in the first half of this year, compared to the same period of 2023, with the entire processed aluminium production increasing by 31% during the period”, said Marian NĂSTASE, Chairman of the Board of Directors, ALRO. “And even if the overall market evolution was positive in the first half of this year, by the end of the second quarter we witnessed a slight downturn in quotations, that persisted in the following months. That keeps us cautious and focused on further improving our operational efficiency, bearing in mind that the effects of the multiple crises we faced over the past years are still present in our day-to-day operations”,added Marian NĂSTASE.

Market Update

At the beginning of the year 2024 the quotations were around 2,200 USD/tonne, reaching a maximum level of 2,741 USD/tonne, by the end of May, setteling above USD 2,500/tonne, in June, when the average 3-months seller LME price was 2,548 USD/tonne.The quotations were driven by stronger demand worldwide, for both primary and processed segments. At European level, the markets focus on flat-rolled aluminium products (processed segment) remained strong, registering an upward trend compared to the first six months of 2023.

In terms of energy, Romania took some steps towards unlocking the market with large generators have the right to sell their energy, both on the free energy market and via the centralised electricity acquisition mechanism. However, the energy market maintains a high degree of volatility and low liquidity.

Financial and Operational Review

The Group’s consolidated sales in H1 2024 increased at RON 1.697 billion, 9% higher compared to the ones registered in H1 2023 being mainly influenced by an improved global demand of aluminium. In H1 2024, sales of aluminium products saw significant increases compared to the same period in 2023. The processed aluminium products registered a 31% growth in sales volume, while the primary aluminium products’s sales increase stood at 16%, in the first six month of this year, compared to H1 2023. This led to a net profit of RON 8.4 million, in H1 2024, compared to a net loss of RON 164 million, in H1 2023.

While the financial results improved in the first half of this year, by the end of the second quarter the international aluminium market registered a slight downturn in quotations. Moreover, the multiple crises that happened over the past years  continue to show their effects on the daily operations, still impacting the energy market and resulting in price distorsions.

In this light, the Group continued its investments in diversifying the products portfolio and coming even closer to the demand of its customers, but also in improving the efficiency of its operations, and reducing the energy consumption. Thus, ALRO continued to reline the electrolysis pots with AP12LE technology, commissioning another 21 pots in the first half of 2024 and put into operation a processing line for customized cut-to-size aluminum plates, processed according to the exact specifications of the customers.

These financial results are available in a separate document on the Company's website, Investor Relations category, Reports section.                                                                  

Figures for ALRO and ALRO Group included in this press release are reported based on the interim condensed consolidated and separate financial statements of ALRO and its subsidiaries (further named Condensed financial statements) for the 6 months ended 30 June 2024, are unaudited and have been prepared in accordance with IAS 34 Interim financial reporting as adopted by the European Union (EU). The accounting policies are in accordance with the Ministry of Public Finance Order no.  2844/2016, with subsequent amendments, which is in accordance with the International Financial Reporting Standards (IFRS) adopted by the European Union (EU), except for IAS 21 The effects of changes in foreign exchange rates regarding functional currency, except for the provisions of IAS 20 Accounting for Government Grants regarding the recognition of revenue from green certificates, and except for the provisions of IFRS 15 Revenue from contracts with customers regarding the revenue from taxes of connection to the distribution grid.

For further information, please contact:

www.alro.ro

Florența Ghiță

Bucharest

Phone: +40 744 644 004

Email: investor.relations@alro.ro

Notes to the Editor:

ALRO Group
The companies’ part of ALRO Group are: ALRO S.A. – manufacturer of aluminium, ALUM S.A. – producer of alumina, Vimetco Extrusion S.R.L. – extrusion business line, Conef S.A. – holding and management company, Vimetco Trading – aluminium sales and CCGT- Power Isalnita- associate.

ALRO
ALRO is a subsidiary of Vimetco PLC (Republic of Cyprus), a global, vertically-integrated primary and processed aluminium producer. The structure of ALRO shareholders is: Vimetco PLC (54.19%), Paval Holding (23.21%), Fondul Proprietatea (10.21%) and others (12.39%).

ALRO is one of the largest vertically integrated aluminium producers in Europe, by production capacity, with a production capacity of 265,000 tpa of electrolytic aluminium, an Eco-Recycling capacity 100,000 tpa, resulting in a production of recycled liquid aluminium of 94,000 tpa. The capacity of the Aluminium Cast House is 309,600 tpa and the processing capacity is 140,000 tpa of cold and hot rolled facilities and extrusion division.

The main market for ALRO products is represented by the European Union; the Company exports its products to the USA and to the Asia as well. ALRO is ISO 9001 certified for quality management and has NADCAP and EN 9100 certificates for aerospace production organizations, ALRO products adhere to the quality standards for primary aluminium on the LME, as well as international standards for flat rolled products.

Since 2020, ALRO and Vimetco Extrusion have been members of ASI (Aluminium Stewardship Initiative), an international association that contributes to enhancing sustainability in the global aluminium sector. In 2023, ALRO and Vimetco Extrusion achieved the first certification in Europe under ASI’s Third version of Performance Standards.