INTERIM REPORT H1 2024
16/08/2024 10:15
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10:15 London, 12:15 Helsinki, 16 August 2024 - Afarak Group SE ("Afarak"
or "the Company") (LSE: AFRK, NASDAQ: AFAGR)
FINANCIAL INTERIM RELEASE H1 2024
H1/24 H1/23 2023
Revenue EUR million 71.4 95.4 153.7
EBITDA EUR million 4.2 15.1 16.6
EBIT EUR million 3.1 14.4 15.0
Earnings before taxes EUR million 1.9 12.1 12.0
Profit EUR million 0.5 10.5 10.0
Earnings per share EUR 0.0 0.04 0.04
EBITDA margin % 5.9 15.8 10.8
EBIT margin % 4.3 15.1 9.8
Earnings margin % 0.0 12.7 7.8
Personnel (end of period) 588 610 595
FIRST HALF 2024 HIGHLIGHTS
* Revenue decreased by 25.1% to EUR 71.4 (H1/2023: 95.4) million;
* Processed material sold decreased by 7% to 11,922 (H1/2023: 12,855) tonnes;
* Tonnage mined increased significantly by 15% to 187,958 (H1/2023: 162,971)
tonnes;
* The Group’s EBITDA was EUR 4.2 (H1/2023: 15.1) million and the EBITDA
margin was 5.9% (H1/2023: 15.8%);
* EBIT was EUR 3.1 (H1/2023: 14.4) million, with the EBIT margin at 4.3%
(H1/2023: 15.1%);
* Profit for the period totalled EUR 0.5 (H1/2023: 10.5) million;
* Cash flow from operations stood at EUR -5.4 (H1/2023: 8.3) million;
* The interest-bearing debt amounted to EUR 4.6 (3.8) (31 December 2023: 3.1)
million;
* Cash and cash equivalents at 30 June totalled EUR 10.1 (30 June 2023: 19.9)
(31 December 2023: 18.0) million.
OUTLOOK FOR THE SECOND HALF OF 2024
On the low carbon ferro-chrome side, the sanctions against Russian material
will only be fully implemented by end of 2024. Increased demand in aeronautics
and defense applications should also start to show some positive impact on the
supply and demand balances. Domestic price levels in China seem to have
bottomed out as well. We expect further improvements in our cost structure
during the second half-year and continue to develop new revenue streams in
Europe. The market for low carbon ferro-chrome will be continuously
competitive throughout the year.
The chrome ore market, on the other hand, is expected to remain strong. We
have been finalizing investment decisions that will enable us to swiftly
increase the output of chrome ore concentrates in South Africa.
CEO Mr. Guy Konsbruck
Afarak achieved a positive EBITDA of €4.2 Million for the six months ended
30 June 2024. This is no small achievement in a very difficult business
environment. Higher realized chrome ore prices helped counterbalancing Low
Carbon Ferrochrome prices that remained under pressure, mainly due to the
presence of massive inventory of Russian material and low-cost imports,
especially from India. The efficiency of our operations provided some buffer
to protect our profitability. 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, Defense, Automotive, Green energies, and various
other industries.
Helsinki, August 16, 2024
Afarak Group SE
Board of Directors
For additional information, please contact:
Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@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 Helsinki
London Stock Exchange
Main media
www.afarak.com
Attachment
* Afarak Group Interim release H1 2024 EN
(https://ml-eu.globenewswire.com/Resource/Download/d8fa2117-be41-459c-9bb5-a198a4d9afc5)