ALRO registered a consolidated turnover of RON 744 million in Q1 2021 in the context of a global economy still affected by the coronavirus

Fri, 05/14/2021 - 08:38
  • Higher sales by 4.4% YoY in Q1 2021 despite a difficult global economy facing the COVID-19 pandemic effects;
  • Positive consolidated EBITDA of RON 33.5 million in Q1 2021, compared to a negative EBITDA of RON 30.6 million in Q1 2020;
  • Positive net cash-flow generated by operating activities of RON 21 million in Q1 2021;
  • Investments represented a key focus in Q1 2021: the AP12LE project reached the number of 100 pots relined and Vimetco Extrusion, ALRO’sdownstream subsidiary started a project valued at EUR 10 million

Slatina, 14 May 2021 – ALRO S.A. (BVB: ALR, “the Company” or “ALRO”), one of the largest vertically integrated aluminium producers in Europe, measured by production capacity announces today its consolidated financial results for the first quarter of 2021. The Group’s turnover increased by 4.4% to RON 744 million in Q1 2021 compared to RON 712 million in Q12020 despite facing challenging market conditions as a direct effect of the coronavirus pandemic. ALRO Group reduced its net loss YoY, to RON 62 million, in Q1 2021, from a loss of RON 110 million in Q1 2020.

"In the first three months of 2021, we witnessed a slight recovery of the international business environment, with demand levels entering an ascendant trend while LME continued to register higher quotations”, said Marian NASTASE, Chairman of ALRO’s Board of Directors.“This translated further into better sales values for ALRO that partially mitigated the difficult context for bauxite and alumina segments and thus ALRO Group registered a positive EBITDA of RON 33.5 million. Moreover, in Q1 2021 we continued our investment programme to reduce energy consumption rates and the overall production costs, along with implementing our anti-crisis cost control plan, aimed at increasing savings and optimizing our operations. Thus, we reached the level of 100 pots relined with the AP12LE technology and this project already reports DC specific energy consumption rates below the initial target estimation. All these measures helped us remain fully operational and to maintain our competitiveness despite these challenging times that the world economy faces”.


COVID-19 and Market Update

During the first quarter of 2021, the LME average increased to 2,096 USD/tonne in Q1 2021, from an average of 1,690 USD/tonne, in Q1 2020. The stable overall demand is supported by the good performance of the automotive and construction sectors, very tight supply, the EU anti-dumping taxes imposed on Chinese extrusions and announced for Chinese flat-rolled products, as well as the restocking activity at the end-users.

While the COVID-19 crisis continued to impact the business environment, ALRO Group managed to operate at normal parameters, in safe conditions and maintain a fully functional distribution chain as a result of the measures complex plan implemented since the beginning of the sanitary crisis.


Financial and Operational Review

In Q1 2021, ALRO Group increased its sales value by 4.4% compared to Q1 2020, mainly as a result of improved aluminium quotations and higher volumes sold, both for primary and processed segments. Thus, the primary aluminium sales increase was driven by the wire rod segment that registered an increase of more than 1,300 tonnes. With the construction and automotive sectors showing signs of improvement, the billets demand stood at similar levels as last year. The processed aluminium sales also registered a 4% increase in sales volume compared to Q1 2020, driven by the above two sectors, but also as a result of the anti-dumping tariffs imposed by the EU on the Chinese products. The increased sales volume translated into higher sales values by 11% for the primary aluminium segment and by 3% for the processed aluminium segment.

The improvement in sales, combined with the cost control programme and energy efficiency investments led to a positive EBITDA of RON 33.5 million, in Q1 2021, compared to a negative EBITDA of RON 30.6 million, in Q1 2020. The Group’s gross profit reached RON 64.9 million, in Q1 2021, compared to a gross loss of RON 2.8 million, in Q1 2020. However, partially due to the exchange rate differences, the Group registered a net loss of RON 61.9 million, in Q1 2021, an improved result compared to the net loss of RON 110 million in Q1 2020.

Notwithstanding a fierce competition in the plates market (mainly from tier 1 suppliers), ALRO remained in Q1 2021 an important player and managed to conclude new deals both for heat-treated and non-heat-treated plates, at a reasonable level that partially mitigated the lower share generated by the aerospace business in 1Q 2021.

The investments represented a key focus in the first quarter of 2021 and the main project of the Company, the AP12LE continued despite the challenges faced by the suppliers involved in this complex project. Thus, as of 31 March 2021, ALRO reached 100 pots relined with this innovative technology since the beginning of this project with an additional 22 pots being commissioned in Q1 2021 while another 22 were in an advanced stage of being relined. Besides this, Vimetco Extrusion, ALRO’s downstream subsidiary, will invest around EUR 10 million in a completely new state-of-the-art aluminium profiles extrusion line, a project estimated to be implemented and commissioned by September 2022. The new and complete 7” extrusion line is equipped with the technology required to operate with reduced human intervention, the entire process is automated and has one of the lowest gas consumption rates on the market.

These financial results are available in a separate document on the Company's website, Investor Relations category, Reports section: .

Figures for ALRO and ALRO Group included in this press release are reported based on the interim condensed consolidated financial statements of ALRO and its subsidiaries (further named Condensed financial statements) for the 3 months ended 31 March 2021 are unaudited and have been prepared in accordance with IAS 34 Interim financial reporting as adopted by the European Union (EU). The accounting policies are in accordance with the Ministry of Public Finance Order no.  2844/2016, with subsequent amendments, 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, except for the provisions of IAS 20 Accounting for Government Grants regarding the recognition of revenue from green certificates, and except for the provisions of IFRS 15 Revenue from contracts with customers regarding the revenue from taxes of connection to the distribution grid.


For further information, please contact:

Florența Ghiță


Phone: +40 744 644 004



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. Having this structure, the Group created an integrated production chain assuring the raw materials for ALRO.



ALRO is a subsidiary of Vimetco N.V., (the Netherlands), 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, 35,000 tonnes per annum of recycled aluminium and 325,000 tonnes per annum of cast aluminium.

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 16 November 2020, ALRO is a member of ASI (Aluminium Stewardship Initiative), an international association that contributes to enhancing sustainability in the global aluminium sector.

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