Alro reports a net profit of RON 156 million in H1 2017

Alro Group

• Net profit of RON 187 million in H1 2017, compared to RON 35 million in H1 2016
• EBITDA of RON 292 million in H1 2017, compared to RON 137 million in H1 2016
• Adjusted net result of RON 219 million in H1 2017, from RON 56 million in H1 2016
• Turnover of RON 1.4 billion in H1 2017, compared to RON 1.2 billion in H1 2016

Alro

• Net profit of RON 156 million in H1 2017, compared to RON 39 million in H1 2016
• EBITDA of RON 227 million in H1 2017, compared to RON 118 million in H1 2016
• Adjusted net result of RON 187 million in H1 2017, from RON 64 million in H1 2016
• Turnover of RON 1.3 billion in H1 2017, compared to RON 1.1 billion in H1 2016

Slatina, 11 August 2017: Alro S.A. (BSE code ALR, the „Company” or „Alro”), the largest aluminium producer in Continental Europe (excluding Russia and Scandinavia), reports a net profit of RON 156 million in H1 2017, which is three times higher than the one reported in the similar period of last year. The adjusted net profit* was of RON 187 million in H1 2017, compared to RON 64 million in H1 2016. The Company’s turnover has increased by 13.4% reaching RON 1.3 billion from RON 1.1 billion in H1 2016.

„Our sustained efforts done in the past years to continue investing in equipment upgrading and streamlining the production flows while closely monitoring the market evolution so that we can take advantage of the opportunities offered by it, are now reflected in these positive results, significantly improved profit margins and, at the same time, in the Company’s ability to generate liquidity”, said Marian Nastase, the President of the Board of Directors of Alro S.A. „The last five years have been difficult and during this time we have had to struggle in unfavorable market conditions with stricter regulations that determined us to look for the best solutions for streamlining the work activities for all our Group’s operations, by improving specific consumption rates, by increasing productivity, by negotiating better prices and better payment terms for the raw materials acquired, and by focusing on value added products with higher margins. Nowadays, in the context of improved market conditions, with a higher level of aluminium price and an increasing demand, we have managed to transform the efforts made in the last years by the entire Alro’s team into profits for our shareholders.”

In the first half of 2017, the aluminium price on the London Stock Exchange continued to record a growth trend, the H1 2017 average being USD 1,880/tonne compared to the same period of last year when it was USD 1,544/tonne. The curtailments announced by the Chinese authorities as part of the policies related to tackle with the reduction of the industrial pollution, the shutdown of illegal capacities, started to become a reality with a strong positive impact on the sector. Also, strong demand in sectors where activate our clients contributed to a healthy performance of the company. This positive market evolution, Alro Group’s vertical integration strategy and the growth of production and the sale of value-added products have helped the Company to get out of the recession period of the aluminium industry stronger and more efficient. 

In H1 2017, Alro achieved an EBITDA level of RON 227,473 thousand, almost double compared with H1 2016, while the net profit was four times higher in the first half of 2017 compared to the same period of last year. Similar results were achieved at Group’s level, EBITDA amounting RON 291,553 thousand compared to RON 136,762 thousand in H1 2016, while the net profit was RON 186,847 thousand in the first half of 2017 compared to RON 35,033 thousand in the similar period of the previous year. In the first half of 2017, Alro reported sales by 13,4% higher compared with H1 2016, while at Group’s level the increase reported in H1 2017 was of 15% compared to similar period of previous year.

For 2017 Alro allocated an investment budget of almost USD 41 million, as the investment component has been and remains a key element for the Company’s and the Group’s future, in order to ensure its organic and sustainable growth. The Company aimed and assumed the role of a “green organisation” a few years ago when corporate social and environmental responsibilities were still at an incipient phase in Romania and when the priorities of those active in the aluminium market were to remain a viable player in a fragile industry marked by a survival fight. Under these circumstances, the Group has continued to closely monitor the effects of its activity on the environment in order to diminish and offset them and it has always been an active member of the communities in which it operates, through actions and events with a strong social, cultural and educational character.

The half-year financial results are available in a separate document on the Company’s website, ”Investor Relations” category,  ”Financial reports” section: http://www.alro.ro/en/reports.

* Adjusted Net Result represents the net result plus/ (minus) non-current assets impairment, plus/ (minus) the loss/ (gain) from derivative financial instruments that do not qualify for hedge accounting, plus/ (minus) deferred tax.

The figures for Alro Group and Alro S.A. included in this press release represent half-year results reported in accordance with the Order of the Ministry of Finance no. 2,844/2016 which is in accordance with the International Financial Reporting Standards (IFRS) adopted by the European Union (EU), except for IAS 21 The effects of changes in foreign exchange rates regarding functional currency.

For further information please contact:

www.alro.ro

Notes to the Editors:

Alro S.A.

Alro is subsidiary of Vimetco N.V., a global, vertically-integrated primary and processed aluminium producer. Alro is the largest aluminium producer in Continental Europe (excluding Russia and Scandinavia), having an installed production capacity of 265,000 tonnes per year.

The main markets for the products manufactured by Alro are within the EU (Germany, Hungary, Poland, Greece and Romania). Alro also exports to the USA and Asia. 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.

Alro Group

The companies part of Alro group are: Alro – the aluminium producer, Alum Tulcea – the alumina producer, Siera Mineral Holdings I, Ltd. – the bauxite producer, Vimetco Extrusion – extrusion products processor, Conef, Global Aluminium Ltd. and Bauxite Marketing Ltd. Having this structure, the Group created an integrated production chain, assuring the raw materials for Alro.