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ALRO registered a consolidated turnover of RON 822 million in Q1 2023
Fri, 05/12/2023 - 08:35Slatina, 12 May 2023 – ALRO S.A. (BSE: ALR, “the Company” or “ALRO”), one of the largest vertically integrated aluminium producers in Europe, measured by production capacity, announces today its interim condensed consolidated financial statements for the first quarter of 2023. ALRO Group registered a turnover of RON 822 million, 25% lower compared to Q1 2022 when it stood at RON 1.1 billion and a net loss of RON 52 million in Q1 2023, compared to the net loss of RON 18 million in Q1 2022. The lower aluminium demand on the international markets coupled with high costs for raw materials, including energy, impacted the Group’s results. However, ALRO’s estimates of market recovery for specific sectors and proved correct and the production and sales started to pick up compared to Q4 2022.
“The first three months of 2023 found us in a new business model compared to the first quarter of 2022, as last year we were forced to take difficult but necessary measures to preserve our activity and temporarily shut down three of our five potrooms. But these swift measures we took to cut down costs, supported also by the good results of our long-term development strategy helped us yet again limit the loss and fulfil all business and social obligations”, said Marian NĂSTASE, Chairman of ALRO’s Board of Directors. “The strong investment programme we implemented over the past 20 years helped us navigate in a very volatile aluminium market, and adapt our production to the changes in demand, while limiting the impact of the high costs with utilities. While the aluminium market started to show slight signs of improvement at the end of the first quarter, we will continue our investments in cost efficient technologies to further support our market position on the long run”, addedMarian NĂSTASE, Chairman of ALRO’s Board of Directors.
Market & Operational Update
In Q1 2023 the LME 3M registered a 26% decrease, with the average three-month seller quotation standing at2,435 USD/ tonne, lower by 834 USD/ tonne, compared to Q1 2022 average, when it reached 3,269 USD/ tonne.
However, ALRO Group swiftly adapted to the new realities, focusing on reducing specific consumptions and increasing energy efficiency. Thus, it continued its investments in the upgrade of its electrolysis pots using AP12LE technology to achieve high energy efficiency. In the first quarter of 2023, ALRO relined 11 pots, compared to five in Q1 2022. Moreover, the Group also proceeded with its programme to increase the capacity of its Eco-Recycling Facility from 35,000 to 85,000 tonnes per year and reduce energy consumption.
The Group also pursued its strategy to invest in increasing the high value-added products output. Its subsidiary, Vimetco Extrusion, commissioned a new, state-of-the-art extrusion press, in 2022, thus increasing the sales of extruded products by 18% in Q1 2023, compared to Q1 2022. The billets demand started to pick up after a long stand-still, resulting in an increase by 22 % in Q1 2023, compared to Q1 2022. The sales for wire rod were above the Group’s budget, and the coils output remained at the same level as in the first quarter of 2022.
The strategy to invest in state-of-the-art technology that reduce consumptions and increase energy efficiency was also recognised at formal levels. The Group achieved first certification in Europe under Aluminium Stewardship Initiative’s Third Version of Performance Standard, confirming its sustainable and responsible business practices.
These financial results are available in a separate document on the Company's website, Investor Relations category, Reports section: http://www.alro.ro/en/reports and at the below link.
Marian-Daniel NĂSTASE Gheorghe DOBRA
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 Editors:
ALRO Group
The companies part of ALRO Group are: ALRO S.A. – manufacturer of aluminium, Alum S.A. – producer of alumina, Sierra Mineral Holdings I, Ltd. – bauxite mining, Vimetco Extrusion S.R.L. – extrusion business line, Conef S.A. – holding and management company, Global Aluminium Ltd. – holding company and Bauxite Marketing Ltd – marketing, Vimetco Trading – aluminium sales. Having this structure, the Group created an integrated production chain assuring the raw materials for ALRO.
ALRO
ALRO is a subsidiary of Vimetco PLC (Republic of Cyprus), a global, vertically-integrated primary and processed aluminium producer. ALRO is one of the largest vertically integrated aluminium producers, by capacity, in Europe, having an installed production capacity of 265,000 tonnes per annum of electrolytic aluminium, 47,000 tonnes per annum of recycled aluminium, and the Cast-House has a total cast aluminium capacity of 332,000 tonnes per annum and processing facilities of 135,000 tpa of hot and cold rolling facilities and extrusion shop.
The main market for ALRO products is represented by the European Union; the Company exports its products to the USA and Asia, as well. ALRO is ISO 9001 certified for quality management and has NADCAP and EN 9100 certificates for aerospace production organizations, ALRO’s products adhere to the quality standards for primary aluminium on the LME, as well as international standards for flat rolled products.
Starting from 18 March 2019, the Index Committee of the Bucharest Stock Exchange approved the inclusion of ALRO (code ALR) in BET, the main index of the market, and in BET-TR, the total return version of BET. ALRO’s shares have been listed on the Bucharest Stock Exchange since October 1997 and ALRO represents the first company in the aluminium industry present in these two indices.
Since 2020, ALRO and Vimetco Extrusion are members of ASI (Aluminium Stewardship Initiative), an international association that contributes to enhancing sustainability in the global aluminium sector.
