Alcomet announces US$17.3 million net profit in the first nine months of 2022 despite declining sales

Alcomet, the Bulgarian manufacturer of aluminium rolled and extruded products, on October 31, declared that the company had yielded an incredible net profit of 34 million levs (US$17.3 million) in the primary nine months of 2022 alone. The profit is, by all means, higher than the 742,000 levs profit in the same period in the previous year.

Alcomet claimed in an interim financial statement that the company's revenue has escalated to 589.4 million levs in January-September from the recorded 374.6 million levs in the first nine months of 2021.

Operational expenses also hiked substantially, to 547.3 million levs from 370.9 million levs, due to the augmenting costs for hired services, personnel and raw materials.

On the other hand, Alcomet's net sales decreased during 2022 by 10.34 per cent to 58,679 mt in the January-September time frame. This production decline can be directly linked to the ongoing Russian-Ukraine crisis that has significantly heightened the prices of energy, logistics and other commodity items.

The nine-month sale of extruded products also nosedived by 3.55 per cent to 20,995 mt, whereas the net sales of rolled products dropped by 13.7 per cent to 37,684 mt.

Only there was a sudden boost in the sales of aluminium profiles by 69 per cent owing to the emerging demand of the solar photovoltaic industry. In comparison, the sales of aluminium sheets and strips remained stoic, amounting to huge numbers of aluminium items getting stored in warehouses.

Alcomet's output declined by 12.7 per cent in 2022 to 57,287 mt in the time period of January-September.

Just a year back, the volume of rolled products had plunged to 37,425 mt from 44,364 mt, while the volume of extruded products shot down to 19,861 mt from 21,239 mt.

Among Alcomet's largest markets in the first nine months of 2022 were, Germany with 19.8 per cent of total sales, Italy with 14.6 per cent and Poland with 12 per cent of total sales.

On October 31, the 1126 CET marked that shares of Alcomet traded at 16.43 per cent higher at 8.15 levs on the Bulgarian Stock Exchange.

Alcomet has mastered the art of manufacturing household, technical and container foils, sheets or strips, along with customised aluminium extrusions on order.