Alro, the largest aluminum producer in Continental Europe (excluding Russia and the Scandinavian Peninsula) posted a net adjusted profit of RON 93 million in the first quarter of 2017, compared to RON 41 million in the similar period of 2016, according to the quarterly financial report, as a press release informs. The company’s turnover was RON 634 million, rising from RON 564 million in the same period in 2016, while the net profit was RON 78 million, compared to RON 27 million, in the same period last year.
“In the first quarter of 2017, Alro achieved a significant operational and financial performance, following the company’s long-term strategy of increasing production and sales of value-added products, as well as valuing more favorable market conditions than in the same period of the previous year”, said Marian Nastase, President of the Board of Alro, adding: “Profitability margins have increased visibly, as well as the Company’s ability to generate liquidity. We have already achieved a significant part of the net profit budgeted for the current year, and the current market conditions make us confident about the rest of the year.”
In Q1 2017, revenue from primary aluminum sales increased by 9 percent compared with the same period of 2016, while processed aluminum sales recorded an even higher 16 percent growth, in line with company’s medium and long-term strategy. This positive evolution was supported by the increase in aluminum prices on the international market (+22 percent compared to Q1 2016), the appreciation of US dollar against the Romanian currency (with 4.2 percent compared to average of Q1 2016), as well as improving the sales structure, factors that have offset the drop in premiums for aluminum products.
At the same time, Alro achieved a significant improvement in cash flows generated from operating activities, reaching RON 96 million (compared to RON 14 million in Q1 2016).
In terms of investments, Alro spent RON 31 million in Q1 2017, compared to about RON 18 million in Q1 2016, which had as main destinations investments co-financed from the European Regional Development Fund, the reconditioning of the electrolysis tanks and other maintenance and improvement of existing equipments.