AFARAK GROUP: INTERIM REPORT H1 2023
18 August 2023 - 4:30PM
AFARAK GROUP: INTERIM REPORT H1 2023
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 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 HelsinkiLondon Stock
ExchangeMain mediawww.afarak.com
- Afarak Group Interim release H1 2023 EN
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