ALRO earns a net profit of RON 329 million despite drop in primary and processed aluminium sales value

ALRO, one of the largest vertically integrated aluminium producers in Europe by production capacity, announced its preliminary consolidated financial results for FY2020, reporting a net profit of RON 329 million compared to a net loss of 67 million in the prior year and an EBIT higher by RON 300 million to RON 399 million. However, the turnover stood down by 9 per cent year-on-year at RON 2.5 billion.

The increase in net profit was primarily due to the robust performance of ALRO’s wire rod and quantitative sales of extruded products, even amidst the COVID-19 pandemic. ALRO managed to implement comprehensive and effective measures to mitigate the COVID-19 impacts, while maintaining a continued flow of operations and ensuring health and safety of the employees.

“The international business environment has faced an unprecedented crisis, without any short-term or medium-term visibility and with changing circumstances from one day to the next. Despite this unfavourable context, ALRO Group managed to maintain all its operations running, worked together with its business partners and succeeded to keep sales and production at good levels”, said Marian NASTASE, Chairman of ALRO’s Board of Directors. “While we limited our investments to crucial projects and implemented an anti-crisis programme, we continued to follow our long-term strategy to focus on high and very high value-added products, and this helped us to partially offset the decrease in demand registered in the first part of 2020. But most importantly, we have considered our number one priority our employees and therefore we have implemented effective and comprehensive measures to mitigate COVID-19 effects,” said  Marian NASTASE, Chairman and non-executive member of the Board of Directors at ALRO.

ALRO’s premium aluminium production saw a decrease of 3 per cent Y-o-Y in FY2020, while the output of processed aluminium declined 6 per cent during the same period. Sales value of both primary aluminium and processed aluminium also decreased by 7 per cent and 8 per cent, respectively, compared to 2019. As a result, the Group’s sales in 2020 decreased 9 per cent to RON 2,514,716 thousand.