Afarak Group Plc Afarak Group: Interim Report H1 2022
August 19 2022 - 2:41AM
UK Regulatory
TIDMAFAGR
07:45 London, 09:45 Helsinki, 19 August 2022 - Afarak Group Plc
("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR)
FINANCIAL INTERIM RELEASE H1 2022
H1/22 H1/21 2021
Revenue EUR million 92.1 37.3 80.3
EBITDA EUR million 24.5 -0.9 5.9
EBIT EUR million 24.0 0.9 6.8
Earnings before taxes EUR million 22.6 -0.5 2.9
Profit from continuing
operations EUR million 21.2 -0.9 0.6
Profit from discontinuing
operations EUR million 2.9 0.0 8.4
Profit EUR million 24.1 -0.9 9.0
Earnings per share EUR 0.10 0.00 0.04
EBITDA margin % 26.7 -2.4 7.4
EBIT margin % 26.1 2.4 8.5
Earnings margin % 24.6 -1.3 3.6
Personnel (end of period) 549 608 503
FIRST HALF 2022 HIGHLIGHTS
-- Revenue increased strongly by 146.5% to EUR 92.1 (H1/2021: 37.3) million;
-- Processed material sold increased by 24.2% to 15,205 (H1/2021: 12,667)
tonnes supported by stronger market demand and higher prices;
-- Tonnage mined decreased by 27.0% to 39,109 (H1/2021: 53,542) tonnes;
-- The Group's EBITDA increased significantly to EUR 24.5 (H1/2021: -0.9)
million and the EBITDA margin was 26.7% (H1/2021: -2.4%);
-- EBIT was EUR 24.0 (H1/2021: 0.9) million, with the EBIT margin at 26.1%
(H1/2021: 2.4%);
-- Profit for the period from continuing operation totalled EUR 21.2
(H1/2021: -0.9) million;
-- Cash flow from operations stood at EUR 10.1 (H1/2021: -1.9) million;
-- Net interest-bearing debt after deducting liquid funds amounted to EUR
21.5 (50.3) (31 December 2021: 32.2) million;
-- Cash and cash equivalents at 30 June totalled EUR 5.0 (30 June 2021: 2.9)
(31 December 2021: 6.3) million.
OUTLOOK FOR THE SECOND HALF OF 2022
In recent weeks the ferro-chromium market has shown signs of
slow-down both in demand and price, which is not unusual during
summer months. The present price reductions may be more
sustainable, nonetheless. On the other hand, the energy prices and
availability will remain the major worry of any producer in the
foreseeable future, and should trigger elevated price levels also
going forward.
Afarak has been for many years now the only Western producer of
low carbon ferro-chrome, a critical material for stainless steel
production. As such, we have experienced very challenging years,
recently. Whereas our main focus has always been on specialty
grades, we are now doing all possible efforts to increase our
production capacities for more widely used standard grades in order
to present options for our long term customers who may start to
experience some reluctance to use certain non-Western origins.
It must be noted that recently Chinese and Indian LC FeCr is
offered, origins which have not been seen normally in the EU and US
market.
CEO GUY KONSBRUCK
"During the first half of 2022, the company succeeded to
substantially further reduce its debt. Our specialty segment showed
increased activity and profits, although the ferro-chrome markets
have not been directly impacted by any sanctions or tariffs.
Sizeable rises in logistic cost, higher raw material cost could be
partially off-set by alternative raw material mixes and favorable
USD exchange rates. We foresee a reduced profitability in H2, as
the market prices show some weakness, and raw materials already
secured may impact on our margin. The FerroAlloys segment, with a
reduced but stable mining activity in South Africa has now reached
a break-even point. We expect some improvements for H2/22 in that
segment.
The company also intends to resume operations in our Magnochrome
refractory plant, in Serbia. Initial investments to the facilities
should be launched during H2.
The commodities and stainless steel markets are generally seeing
a positive trend, but we expect to see a more challenged business
environment throughout the rest of the year. All will depend on the
further development of the present geo-political tensions both in
Europe and South-East Asia"
Helsinki, August 19, 2022
Afarak Group Plc
Board of Directors
For additional information, please contact:
Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@afarak.com
https://www.globenewswire.com/Tracker?data=3LYaUoNc9WYVcJ2De3piQFtTEtdau7DfOMqi27fLJDM9cv8Y4iMPLZAaBX_uoTUBAFmouE3MYlYWWRzl_80hpqZ9xacggmOQb4uaK9TKu0w=
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
London Stock Exchange
Main media
www.afarak.com
Attachment
-- Afarak Group Interim release H1 2022 EN
https://ml-eu.globenewswire.com/Resource/Download/b3e4b95e-05b4-42c8-83ac-6b31ba3e9532
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August 19, 2022 02:41 ET (06:41 GMT)
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