Slatina-based Alro registered a net profit of RON 125 million, in Q1 2018, compared to a net profit of RON 90 million, in Q1 2017, a press release informs. The group’s turnover increased in Q1 2018 to RON 749 million, compared RON 681 million, in Q1 2017.
“In the first quarter of 2018 we continued to implement our strong investment programme aimed at improving the output and products’ quality, while reducing the overall consumption rates”, said Marian Nastase, Chairman of the Board of Directors of Alro. “While we acknowledged the significant improvement of aluminium quotation and its positive impact on our financial results, we need to take all the necessary measures to maintain our organization as lean as possible. This strategy helped us when the LME registered major drops and also brings us significant added value for all our stakeholders each time the market prices increase”.
In Q1 2018, the international aluminium market continued the trend registered in the second half of 2017 and aluminium quotation and demand grew significantly, with the LME average quotation being of USD 2,159 /tonne, as compared to USD 1,851 /tonne, in Q1 2017.
Alro Group continued its focus of supplying high and very high value-added products in both the primary and the processed aluminium segments. As a result of an improved aluminium market, total sales reached RON 749 million (USD 198 million) in Q1 2018, compared RON 681 million (USD 180 million), in Q1 2017.
The Group pursued its long-term development strategy, investing in Q1 2018 about RON 41 million in new technology and processes aimed at increasing the overall efficiency. Thus, it focused on research projects for high qualification industrial applications, on improving the aluminium hydroxide technology, which are co-financed by the European Fund for Regional Development, by the Competitiveness Operational Program 2014-2020 and on replacement of some of the existing equipment in order to sustain the level of the budgeted production.
The development strategy implemented at the Group’s level proved to be successful, with all companies of Alro Group recording profits last year. On 27 April 2018, Alro informed its shareholders and investors about the distribution of dividends for the financial year 2017, when a gross dividend amounting to RON 0.53523 /share was approved for the benefit of Alro’s shareholders.