The leading Bulgarian manufacturer of aluminium rolled and extruded products, Alcomet, reported a decline in standalone net profit to 3.7 million levs (1.9 million euros) during H1 2023. This represents a significant drop from the 16.8 million levs recorded in the corresponding period of the previous year, mainly due to a decrease in revenue.
According to the interim financial statement published on July 29, the company's total operating revenue for the year's first half decreased to 251.94 million levs, down from 434.5 million levs recorded during the same period the previous year.
During H1 2023, there was a substantial decrease in the volume of goods sold, amounting to more than 31 per cent, with total sales reaching 30,222 tonnes. Specifically, sales of extruded products experienced an 8.7 per cent decline, totalling 14,167 tonnes, while sales of rolled products plummeted by 43.4 per cent, amounting to 16,055 tonnes. The production of goods also witnessed a notable drop, decreasing by over 35 per cent to 27,542 tonnes during the same period.
Alcomet reported a decline in sales, attributing it to geopolitical upheaval, inflation, and the global economic slowdown. These challenges have led to a standstill in many sectors that typically experience increased consumption of aluminium products. Consequently, the rate of using warehouse stocks and the volume of new orders has been affected. Simultaneously, the aluminium producer announced increased demand from the automotive and solar photovoltaic industries. The company also disclosed its progress in establishing new production facilities for anodizing profiles, anticipating doubling its capacity for such products.
However, during the initial half of the year until June, Alcomet substantially reduced its expenses to 247.8 million levs compared to 412.6 million levs from the previous year. This impressive cost-cutting was primarily attributed to raw material expenses, which decreased by over 50 per cent to 170.4 million levs. However, there was an increase in the cost of goods sold, rising by 49 per cent year-on-year, and salary expenses also experienced a 7 per cent uptick during the same period.
Responses
