Afarak Group Plc Afarak Group: Interim Report H1 2023
18 August 2023 - 4:30PM
UK Regulatory
TIDMAFAGR
07:30 London, 09:30 Helsinki, 18 August 2023 - Afarak Group SE
("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR)
FINANCIAL INTERIM RELEASE H1 2023
H1/23 H1/22 2022
Revenue EUR million 95.3 92.1 198.7
EBITDA EUR million 15.1 24.5 53.7
EBIT EUR million 14.4 24.0 52.3
Earnings before taxes EUR million 12.1 22.6 49.2
Profit from continuing
operations EUR million 10.5 21.2 44.7
Profit from discontinuing
operations EUR million 0.0 2.9 2.9
Profit EUR million 10.5 24.1 47.6
Earnings per share EUR 0.04 0.10 0.19
EBITDA margin % 15.8 26.7 27.1
EBIT margin % 15.1 26.1 26.3
Earnings margin % 12.7 24.6 24.8
Personnel (end of period) 610 549 600
FIRST HALF 2023 HIGHLIGHTS
-- Revenue increased by 3.6% to EUR 95.3 (H1/2022: 92.1) million;
-- Processed material sold decreased by 15.5% to 12,855 (H1/2022: 15,205)
tonnes;
-- Tonnage mined increased significantly to 162,971 (H1/2022: 39,109)
tonnes;
-- The Group's EBITDA was EUR 15.1 (H1/2022: 24.5) million and the EBITDA
margin was 15.8% (H1/2022: 26.7%);
-- EBIT was EUR 14.4 (H1/2022: 24.0) million, with the EBIT margin at 15.1%
(H1/2022: 26.1%);
-- Profit for the period totalled EUR 10.5 (H1/2022: 21.2) million;
-- Cash flow from operations stood at EUR 8.3 (H1/2022: 10.1) million;
-- The interest-bearing debt amounted to EUR 3.8 (26.4) (31 December 2022:
2.2) million;
-- Cash and cash equivalents at 30 June totalled EUR 19.9 (30 June 2022:
5.0) (31 December 2022: 12.4) million.
OUTLOOK FOR THE SECOND HALF OF 2023
The ferro-chromium market typically slows down both in demand
and price in Q3, due to the summer break. The prices for low carbon
ferro-chrome have reduced substantially during H1, but now seem to
have found a bottom. The low-priced imports from China and India in
2023 have led us to reduce our output (especially of standard
grades). We do not expect substantial changes during H2/2023 in
that respect. Afarak has been for many years now the only Western
producer of low carbon ferro-chrome, a critical material for the
production of the Aerospace, Automotive, Green energies, and
various other industries.
CEO Dr ROMAN LURF
"During the first half of 2023, the company succeeded to record
very solid results from our underlying base business under
challenging market conditions. Our specialty segment showed
sustainable profitability with stable demand in our core markets
US, Europe and Japan, although the global low carbon ferro-chrome
demand and its market prices have decreased substantially over that
period.
For H2 we foresee an ongoing challenging market environment,
with further weak global market prices, combined with low demand. A
lot will depend on the central banks inflation strategy, the recent
government policies such as the US Inflation Reduction Act, the
EU's proposed Green Deal and the further development of the present
geo-political tensions both in Europe and South-East Asia as
well.
Nevertheless, we are confident about remaining profitable due to
being the top-quality low carbon ferro-chrome producer in the
global market and our ongoing cost reduction and productivity
improvement programs in place.
The Ferro-Alloys segment, based on our mining activity in South
Africa is continuously improving and has been profitable in H1. For
H2 we expect further positive developments which are driven by our
continuous business- and development- improvement initiatives.
The company also intends to resume the development and
operations in our Magnochrome refractory project, in Serbia to
strengthen our business model through further diversification.
Initial investments to the facilities should be launched during
H2.
The planned integration of the LL-resources Group into Afarak,
is expected to show first synergy effects during Q4 2023, and we
are very positive about the additional revenue and profit streams
triggered and added by the combination of both organizations.
Finally, I would like to thank all our shareholders, our
customers and suppliers and our outstanding employees for their
continuous support and efforts which has been crucial for our
success.
"
Helsinki, August 18, 2023
Afarak Group SE
Board of Directors
For additional information, please contact:
Roman Lurf, CEO, +436641135012, Roman.Lurf@afarak.com
https://www.globenewswire.com/Tracker?data=G6GNfOTfXplEdF-sVTlFWNZrabUm2uKXW_EGrXgKODN3X_pSXibGwcRGT-yPhbMGeKrY3qQXwxDkUOum1NzIcm64qC0eI6DYMiLdbKDH6k4=
Financial reports and other investor information are available
on the Company's website: www.afarak.com.
Afarak Group is a specialist alloy producer focused on
delivering sustainable growth with a Speciality Alloys business in
southern Europe and a FerroAlloys business in South Africa. The
Company is listed on NASDAQ Helsinki (AFAGR) and the Main Market of
the London Stock Exchange (AFRK).
Distribution:
NASDAQ Helsinki
London Stock Exchange
Main media
www.afarak.com
Attachment
-- Afarak Group Interim release H1 2023 EN
https://ml-eu.globenewswire.com/Resource/Download/7009e9d7-9be1-4236-9c67-0362b4babcf6
(END) Dow Jones Newswires
August 18, 2023 02:30 ET (06:30 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
Afarak (LSE:AFRK)
Historical Stock Chart
From Apr 2024 to May 2024
Afarak (LSE:AFRK)
Historical Stock Chart
From May 2023 to May 2024