Group sales reached RON2.7 billion in 2017, higher than RON2.3 billion a year before, while earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to RON566 million in 2017, from RON292 million in the previous year.
“In 2017 after comprehensive and sustained efforts, we succeeded to obtain significantly improved profits for all our business lines. Alro Group recorded the highest results in the last ten years, reflecting the improved operating activity that generated an EBITDA of RON 566 million. The Group’s turnover boosted as well, by 18%, being the result of our successful growth and development strategies, all along with our teams’ sustained efforts, while the market environment was a positive one in 2017”, said Marian Nastase, Chairman of the Board of Directors of Alro S.A.
These improved financial results of Alro Group were sustained by the investment strategy that included last year projects to increase the share of high value-added products and the expansion of the production mix. The Group has also implemented new technologies for the production of hot-rolled aluminium plates for high-tech industrial applications, as well as for the aeronautic and automotive industry.
In addition, the Group continued to closely monitor its production costs, reducing costs for coke, aluminium fluoride and pitch. Moreover, the Group recorded a decrease in production costs through the acquisition of aluminium waste. The investments done throughout 2017, targeted as well the overall reduction of production costs and energy efficiency projects in the primary aluminium production sector.
In 2018, as part of its investment strategy, the Group will continue to target a reduction in consumption rates and an increase in its operational efficiency. Thus, Alro’s stand-alone budget for 2018, as approved by the Ordinary Shareholders’ Meeting on 2 February 2018, stipulates a turnover of USD663 million, an EBITDA of USD94 million and a net profit of approximately USD43 million.
Alro Slatina, the largest aluminium producer, in terms of capacity, in Continental Europe (excluding Russia and the Scandinavian Peninsula), registered a net profit of RON318 million in 2017, compared to a net profit of RON67 million, in 2016. The adjusted net profit reached RON355 million in 2017, higher than RON101 million in 2016. Its turnover also increased to RON2.47 billion, from RON 2.13 billion in 2016.
“At the same time, this positive development was reflected by the capital market, as well, as the share price appreciated throughout the year, by 178% since the beginning of the year, Alro share being one of the top performers on Bucharest Stock Exchange. We aim to continue our long-term vertical-integration strategy and reach the target to become Green Factory, Next Generation Factory, Innovating and Sustainable, while we take all necessary steps to create sustainable value for our shareholders and for our business partners,” Nastase added.
In the financial year 2017, the international aluminium market environment was a positive one and the price of aluminium kept growing, with the LME average price being of USD1,969/ton, as compared to USD1,605/ton, in 2016. This upward trend reached higher levels in the last quarter of 2017, with an average price of USD2,102/ton, meaning USD392/ton more than in the fourth quarter of 2016 when it stood at USD1,710/ton.
In 2017, Alro had also focused on supplying high and very high value-added products in both the primary and the processed aluminium segments. Thus, the sales of processed aluminium increased from 77,000 tons in 2016 to 82,000 tons in 2017, while primary aluminium sales slightly decreased to 151,000 tons from 154,000 tons in 2016.
Alro is subsidiary of Vimetco N.V., a global, vertically-integrated primary and processed aluminium producer. Alro is the largest aluminium producer in Continental Europe (excluding Russia and the Scandinavian Peninsula), having an installed production capacity of 265,000 tons per year.