AFARAK GROUP SE: FINANCIAL STATEMENTS RELEASE 2023
February 23 2024 - 3:41AM
UK Regulatory
AFARAK GROUP SE: FINANCIAL STATEMENTS RELEASE 2023
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 at EUR 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. Suez Canal situation),
and somewhat stronger internal demands. Hence we foresee a slightly
more friendly market outlook, at least for the first quarter 2024.
The interest rates should also reduce over 2024.
Afarak has been for many years now the only
Western producer of low carbon ferro-chrome, a critical material
for the production of the Aerospace, Automotive, Green energies,
and various other industries.
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 Europe.
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 Afarak Group's EBITDA per full year. This new policy will
allow the board to take prudent decisions based on market
conditions whilst continuing to share its positive results with
shareholders.
CEO GUY KONSBRUCK
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 Europe
and South-East Asia as well.”
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 India and China. It took
until the very end of 2023 for the EU, to put imports of Russian
ferroalloys on the sanction list. Our margins were also impacted by
high interest rates and freight cost. Nevertheless, we continued to
be profitable and cash positive.
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 May 2024.
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
Afarak Group SE
Board of Directors
For additional information, please contact:
Guy Konsbruck, CEO, +356 2122
1566, guy.konsbruck@afarak.com
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
- Afarak_Release_FY 2023_EN
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