ALRO Group registers a RON 2.54 billion turnover in Q1-Q3 2024 and continues the investment in diversifying its products’ portfolio
We 13/11/2024 6:44 PM
- Higher sales volumes of high and very high added-value products both in primary and in processed aluminium sectors;
- Improved cost structure, as a result of the increase in the aluminium recycling facility capacity, the Group liquid aluminium production from scrap increasing by 125% in Q1-Q3 2024, compared to the same period of 2023;
- Investments in technology to further diversify the products’ range and customers portfolio, following the commissioning of a RON 13.7 million investment in a new cutting-edge aluminium processing facility, CUTSMART SYSTEMS;
Slatina, 13 November 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 financial results for the nine months ended 30 September 2024. The Group's turnover increased by 13% (Q1-Q3 2024: RON 2.54 billion vs Q1-Q3 2023: RON 2.24 billion), on the back of higher aluminium prices and improved demand. ALRO Group registered a net profit of RON 126.8 million (Q1-Q3 2023: a net loss of RON 394 million), because of better cost structure following higher production of liquid aluminium from scrap and higher sales of high and very high added-value aluminium products.
“The results for the first nine months of 2024 are a direct reflection of the strategic focus on increasing the output of high added-value aluminium products, diversifying our portfolio, and reinforcing cost control measures like expanding our recycling facility capacity. The investments in high-end technology, to supply sophisticated products already have a positive impact in our results, allowing us to further expand on the international markets”, said Marian NĂSTASE, Chairman of the Board of Directors, ALRO. “We’re committed to continuing on this path, actively monitoring the market and taking appropriate measures to consolidate our position, ensuring long-term value creation and resilience”, added Marian NĂSTASE.
The average price at London Metal Exchange (LME) increased by 4% in Q1-Q3 2024 compared to the average 3-month seller LME registered in the same period of 2023, with a high of 2,741 USD/tonne on 29 May 2024. The average 3-month seller LME quotation for Q1-Q3 2024 was 2,407 USD/tonne, compared to 2,306 USD/tonne in Q1-Q3 2023.
To support the aluminium output in line with the customers’ demand, in Q1-Q3 2024 the Group increased the production of liquid aluminium from scrap by 125% compared Q1-Q3 2024, while the production of electrolytic aluminium production increased, as well, by 5% during the analysed period.
On this background, doubled by an optimal products’ mix, and a strong demand for aerospace products, ALRO Group increased the sales of flat rolled products, for this segment achieving sales higher by 53%, in terms of quantities, than in Q1-Q3 2023. The overall sales of processed aluminium were higher by more than 20,000 tonnes in the first nine months of 2024 (66,007 tonnes in Q1-Q3 2024, compared to 43,269 tonnes in Q1-Q3 2023). The sales of primary aluminium also increased to 86,500 tonnes, from 78,934 tonnes 9M 2024 – 9M 2023).
Focusing on consolidating its position on the international markets and targeting new markets and customers, ALRO Group continued its investments in technology meant to bring the Group even closer to its clients and allowing it to offer personalised solutions for sophisticated industries. As such, ALRO commissioned the CUTSMART SYSTEM unit, following a RON 13.7 million investment. The new production facility allows the Group to produce complex flat rolled products, with the dimensions and tolerances defined in relation with the customers’ requirements.
Following the same path towards increased output of high and very high added-value products, ALRO also invested in an aluminium aging furnace with electric heating. Besides the positive impact in terms of production, the new technology also increases the energy efficiency of the technological processes and strengthens the Group’s efforts to produce low carbon aluminium.
In its turn, the Group's subsidiary, Vimetco Extrusion, completed the installation of an automatic packaging line for the extruded aluminium profiles and finalised the transition from manual packaging to automatic packaging, staff training, the production acceleration process. The total project amounted at RON 31.8 million, including a a grant of RON 7.1 million, from Iceland, Lichtenstein, and Norway through the EEA Grant Financial Mechanism 2014-2021 under the program “SME Development in Romania,” area of interest: Green Innovation in industry, Blue Growth, and ICT.
The transformation that ALRO has undertaken over the last 20 years and the results of investments of more than 900 million USD in technology, efficiency and reducing the environmental footprint, have also been translated into the new visual identity of the company. This refreshed identity is also a statement for the future, representing ALRO's commitment to sustainable and high-efficiency manufacturing processes.
These financial results are available in a separate document on the Company's website, Investor Relations category, Reports section: https://www.alro.ro/en/investor-relations/reports and at the below link:
Marian-Daniel NĂSTASE Marin CILIANU
Chairman of the Board of Directors Chief Executive Officer
For further information, please contact:
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.
