Alro registered a net profit of RON 223 million in the first nine months of 2017

Wed, 11/15/2017 - 09:07

Financial and operational information:

  • Turnover of RON 1.9 billion, higher by 18% compared to RON 1.6 billion in the similar period of 2016
  • EBITDA of RON 336 million, compared to an EBITDA of RON 167 million in the similar period of 2016
  • Adjusted Net Profit of RON 269 million, compared to an adjusted net profit of 94 million in the similar period of 2016
  • Net profit of RON 223 million, compared to a net profit of RON 64 million in the similar period of 2016
  • Primary aluminium production of 211,000 tonnes, compared to 205,000 tonnes in similar period of 2016
  • Processed aluminium production of 63,000 tonees, compared to 58,000 tonnes in similar period of 2016

Slatina, November 15, 2017 – Alro S.A. (BSE: ALR, „Company” or „Alro”), the largest aluminium producer in Continental Europe (except Russia and Scandinavia), reports a net profit of RON 223 million in the first nine months of 2017, a significant increase compared to RON 64 million, the net profit achieved in the similar period of 2016. Adjusted net profit* was RON 269 million, compared to RON 94 million in the similar period of 2016. Company’s turnover increased by 18%, reaching RON 1.9 billion from RON 1.6 billion, in the first nine months of 2016. EBITDA amounted to RON 336 million, up from RON 167 million, level achieved in the first nine months of 2016.

The financial results reported by Alro in the third quarter continued the positive trend from the first half of the year and confirms once again that our comprehensive investment program helped us increase our operational efficiency, enter complex markets such as aeronautics and automotive and to benefit from the growth of the international aluminium market registered this year” said Marian Nastase, President of the Board of Alro. „We are at the point where we have optimized the raw material costs, increased productivity and high-added value aluminium production and extended our customers portfolio. Under these circumstances, we have the basis to implement a new stage in our development program, which includes investments of USD 190 million, out of which approximately USD 100 million are for increasing the energy efficiency. Specifically, the Company’s management will focus, during the next period, on implementing state-of-the-art green technologies investments, that will allow us to produce high-value added aluminium and will bring us closer to zero-waste and zero-emissions target.”

In the first nine months of 2017, the aluminium price on the London Metal Exchange (LME) continued to register an upward trend, the average aluminium quotation for this period being 1,924 USD/tonne compared to the similar period of 2016 when the LME average was 1,570 USD/tonne. The aluminium quotation reached a maximum level of 2,164 USD/tonne on September 20th, 2017. Taking advantage of these favorable market conditions during the nine months of 2017, the Company impoved its gross margin to 21% versus 12%, the level reached in the similar period of 2016 and the operating profit was RON 273 million compared to RON 111 million in the similar period of 2016.

During the nine months of 2017, revenue from primary aluminium sales increased by 19% compared to the similar period of 2016, while the revenue from processed aluminium sales also increased by 18%, in line with the Company’s medium and long-term strategy. This evolution was also determined by the increase of the aluminium price on international market (+22.5% versus Q1-Q3 2016), as well as by the improvement of sales structure.

In the first nine months of this year, the cash flows from operating activities were RON 267 million compared to RON 79 million in the similar period of 2016, mainly due to gross margin increase. These cash flows reflect the Company’s ability to generate significant liquidities from the aluminium production activity and also represent the result of Company’s increased operating efficiency.

Alro invested USD 24.5 million, in the first nine months of this year, almost a double level compared to the similar period of 2016 for increasing the customers portfolio, as well as for starting a project co-funded from European funds, which aims increasing the capacity of hot-rolled products. Additionally, Alro has continued to invest in increasing energy efficiency, as well as the quality improvement of the Company’s products, but also in the maintenance necessary for the production activity. 

In the last quarter of 2017, Alro will continue the investments for technological upgrading and operational streamline, according to the approved budget of USD 41 million for the entire 2017 and will monitor the evolution of raw material costs, in order to keep its competitiveness on international markets.

Quarterly financial results are available in a separate document on the Company’s website, “Investor Relations” category,  ”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 S.A. included in this press release are  reported in accordance with the Order of the Ministry of Finance no. 2844/2016 which is in accordance with IFRS, as adopted by the European Union, except for IAS 21 The effects of changes in foreign exchange rates.

 

For further information please contact:

www.alro.ro

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Premium Communication

Bucureşti

Telefon +40 (0) 21 411 01 52

Email florenta.ghita@premiumpr.ro

 

 

 

Notes to the Editors:

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.

The content of the www.alro.rosite is not incorporated and is not part of this ad in any way.