Alro recorded a net profit of 156 million lei in H1 2017
Fri, 11/08/2017 - 07:59
Alro Group
- Net profit of 187 million lei in H1 2017, compared to 35 million lei in H1 2016
- EBITDA of 292 million lei in H1 2017, compared to 137 million lei in H1 2016
- Adjusted net profit of 219 million lei in H1 2017, from 56 million lei in H1 2016
- Revenue of 1.4 billion lei in H1 2017, compared to 1.2 billion lei in H1 2016
Alro
- Net profit of 156 million lei in H1 2017, compared to 39 million lei in H1 2016
- EBITDA of 227 million lei in H1 2017, compared to 118 million lei in H1 2016
- Adjusted net profit of 187 million lei in H1 2017, from an adjusted net profit of 64 million lei in H1 2016
- Revenue of 1.3 billion lei in H1 2017, compared to 1.1 billion lei in H1 2016
Slatina, August 11, 2017 – Alro S.A. (BVB: ALR, “the Company” or “Alro”), the largest aluminum producer in Continental Europe (excluding Russia and Scandinavia), recorded a net profit of 156 million lei in H1 2017, three times higher than the one reported in the same period last year. Adjusted net profit* was 187 million lei in H1 2017, compared to 64 million lei in H1 2016. The Company's revenue grew by 13.4%, reaching 1.3 billion lei, up from 1.1 billion lei in H1 2016.
“Our sustained efforts over the past years, investing in the modernization of equipment and improving production efficiency while closely monitoring market trends to take advantage of opportunities, have translated into positive results, significantly improved profitability margins, and the Company’s ability to generate liquidity,” said Marian Năstase, Chairman of Alro S.A.’s Board of Directors. “The last five years have been difficult, as we had to face challenging market conditions and increasingly stringent regulations, forcing us to find the best solutions to optimize all operations within the Group. This included improving specific consumption, increasing productivity, negotiating better raw material procurement terms, and focusing more on higher-margin products. Now, with improved market conditions, a solid aluminum price, and growing demand, we are successfully turning our efforts of the past few years into profits for our shareholders.”
In the first half of the year, the price of aluminum on the London Metal Exchange (LME) continued its upward trend, with an average price of 1,880 USD/tonne in H1 2017, compared to 1,544 USD/tonne in the same period last year. Capacity reductions announced by Chinese authorities as part of their pollution reduction policies, including the shutdown of illegal capacities, have begun to positively impact the sector. Additionally, strong demand from sectors in which our clients operate contributed to the Company's healthy performance. This positive market trend, combined with Alro Group’s strategy of vertical integration and increased production and sales of high-value-added products, has helped the Company emerge from the aluminum industry recession stronger and more efficient.
In H1 2017, Alro recorded an EBITDA level of 227,473 thousand RON, almost double compared to H1 2016, while net profit was four times higher in the first half of 2017 compared to the same period last year. Similarly, at the Group level, EBITDA reached 291,553 thousand RON in H1 2017, compared to 136,762 thousand RON in H1 2016, while net profit was 186,847 thousand RON in H1 2017, compared to 35,033 thousand RON in the same period last year. Sales also increased in the first half of 2017, with Alro recording a 13.4% rise compared to H1 2016, while the Group saw a 15% increase over the same period.
For 2017, Alro allocated an investment budget of nearly 41 million USD, as the investment component remains key for the future growth of the Company and the Group, ensuring sustainable organic development. The Company has committed to being a “green organization,” even when corporate social responsibility and environmental responsibility were still in their early stages in Romania. Despite difficult industry conditions, the Group has continued to monitor the environmental impact of its activities to mitigate and compensate for it and has been actively involved in community life through socially, culturally, and educationally impactful events.
The financial results are available in a separate document on Alro S.A.’s website, under the “Investor Relations” section, “Financial Reports”.
*Adjusted net result represents net result plus/(minus) depreciation expense/(income), plus/(minus) loss/(gain) from derivative financial instruments not qualifying for hedge accounting, plus/(minus) deferred income tax expense/(income).
For more information, please contact:
Florența Ghiță
Premium Communication
București
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Editor’s note:
Alro S.A. is a subsidiary of Vimetco N.V., a vertically integrated global primary and processed aluminum company. Alro is the largest aluminum producer in Continental Europe (excluding Russia and Scandinavia), with an installed production capacity of 265,000 tpa.
The main markets for Alro’s products are the European Union (Germany, Hungary, Poland, Greece, and Romania). The Company also exports to the USA and Asia. Alro is ISO 9001 certified for quality management and holds NADCAP and EN 9100 certifications for aerospace production units. Its products meet the quality standards for primary aluminum set by the London Metal Exchange (LME) and international standards for flat-rolled products.
Alro Group
The companies in Alro Group include Alro - aluminum producer, Alum Tulcea - alumina producer, Sierra Mineral Holdings I, Ltd. - bauxite producer, Vimetco Extrusion - extruded products processor, Conef, Global Aluminium Ltd., and Bauxite Marketing Ltd. With this structure, the Group has created an integrated production chain, ensuring raw material supply for Alro.