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, as a press release informs.
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.
”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,” Marian Nastase, the President of the Board of Directors of Alro said
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 percent higher compared with H1 2016, while at Group’s level the increase reported in H1 2017 was of 15 percent 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.