09:45 London, 11:45 Helsinki, 23 February 2024 - Afarak Group SE ("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR)
FINANCIAL STATEMENTS RELEASE 2023
H2/23 | H2/22 | FY2023 | FY2022 | ||
Revenue | EUR million | 58.3 | 106.6 | 153.7 | 198.7 |
EBITDA | EUR million | 1.5 | 29.2 | 16.6 | 53.7 |
EBIT | EUR million | 0.6 | 28.2 | 15.0 | 52.3 |
Earnings before taxes | EUR million | -0.2 | 26.6 | 12.0 | 49.2 |
Profit from continuing operations | EUR million | -0.5 | 23.5 | 10.0 | 44.7 |
Profit from discontinued operations | EUR million | 0.0 | 0.0 | 0.0 | 2.9 |
Profit for the period | EUR million | -0.5 | 23.5 | 10.0 | 47.6 |
Earnings per share | EUR | 0.00 | 0.09 | 0.04 | 0.19 |
EBITDA margin | % | 2.5 | 27.4 | 10.8 | 27.1 |
EBIT margin | % | 1.2 | 26.5 | 9.8 | 26.3 |
Earnings margin | % | -0.3 | 24.9 | 7.8 | 24.8 |
Personnel (end of period) | 595 | 600 | 595 | 600 |
SECOND HALF 2023 HIGHLIGHTS
- Revenue for the second half of 2023 decreased to
EUR 58.3 (H2/2022: 106.6) million; - Speciality Alloys processed material sold decreased by 23.5%, to 7,854 (H2/2022: 10,880) tonnes;
- Tonnage mined increased significantly by 86.2%, to 173,629 (H2/2022: 93,253) tonnes;
- Group’s EBITDA decreased to
EUR 1.5 (H2/2022: 29.2) million and the EBITDA margin stood at 2.5% (H2/2022: 27.4%); - EBIT was
EUR 0.6 (H2/2022: 28.2) million and the EBIT margin stood at 1.2% (H2/2022: 26.5%); - Loss for the period totalled
EUR -0.5 (H2/2022: Profit 23.5) million; - Cash flow from operations during H2 2023 was
EUR 1.3 (H2/2022: 21.1) million; - The interest-bearing debt of the Group remained at the same level at
EUR 3.1 (31 December 2022 : 2.2) (30 June 2023 : 3.8) million; - Cash and cash equivalents at 31 December totalled
EUR 18.0 (31 December 2022 : 12.4) (30 June 2023 : 19.9) million.
FULL YEAR 2023 HIGHLIGHTS
- The Group revenue was lower compared to prior year
EUR 153.7 (198.7) million; - Speciality Alloys Processed material sold increased by 20.6%, to 20,709 (FY/2022: 26,085) tonnes;
- Tonnage mined increased by 154.3%, to 336,601 (FY/2022: 132,362) tonnes;
- EBITDA during the year decreased to
EUR 16.6 (FY/2022: 53.7) million. EBIT stood atEUR 15.0 (FY/2022: 52.3) million; - Profit for the full year 2023 totalled
EUR 10.0 (FY/2022: 47.6) million.
MARKET SENTIMENT FOR 2024
The Indian and Chinese in-flows seem to be reducing, due to high logistics cost (cf.
We had to reduce our output of standard grades, as we could not produce and sell those in an economically responsible way, but we continue to improve our productivity and efficiency, so as to cope better and better with adverse market conditions. We expect the margin pressure to continue, at least through H1/2024, due to the weak state of the stainless steel industry, mostly in
DIVIDEND PROPOSAL
The Board of Directors will propose a new dividend policy to the Annual General Meeting,. The Group will in future review its distributions to shareholders either through a capital redemption or dividend. The target dividend payout ratio in respect to each financial year shall be minimum 10% (ten percent) of the
CEO
In our previous release we stated:
“For H2 we foresee an ongoing challenging market environment, with further weak global market prices, combined with low demand. A lot will depend on the central banks inflation strategy, the recent government policies such as the US Inflation Reduction Act, the EU’s proposed Green Deal and the further development of the present geo-political tensions both in
We were proven right. The second half year 2023 was characterized by very sluggish markets and serious pressure on prices by the Russian imported material as well as the strong pressure of other imported materials from
As expected, the ferro-alloys segment continued to perform well and improved the group’s profitability.
We expect further positive developments in this segment for 2024.
We have been driving forward the drilling and exploration work in our Magnochrome plant and expect a complete and updated feasibility study by end of
With all above in mind, we are still presenting in 2023 one of the best results in AFARAK’s history, which is largely an achievement of my ever so committed colleagues and EMT members.
I wish to thank each and every one for their great work.
Helsinki, February 23, 2024
Board of Directors
For additional information, please contact:
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
Main media
www.afarak.com
Attachment
- Afarak_Release_FY 2023_EN
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