In its consolidated and separate financial results for H1 2024, ALRO, one of Europe's leading vertically integrated aluminium producers by production capacity, has demonstrated notable improvement in its financial performance.
For the six months ending June 30, 2024, the Group reported a turnover of RON 1.697 billion, reflecting a 9 per cent increase compared to RON 1.559 billion during the same period in 2023. This growth was driven by stronger London Metal Exchange (LME) quotations and higher sales of value-added aluminium products.
Marian Năstase, Chairman of the Board of Directors at ALRO, said, "The investments we made in technology, operational efficiency, portfolio diversification and capturing new markets helped us even better capitalise the upturn that the aluminium market registered in the first six months of this year, with a direct effect on the final result."
"Our focus on portfolio diversification, with an accent on high and very high added-value products, translated in a record increase of almost 60 per cent in the production for flat-rolled aluminium in the first half of this year, compared to the same period of 2023, with the entire processed aluminium production increasing by 31 per cent during the period."
"And even if the overall market evolution was positive in the first half of this year, by the end of the second quarter, we witnessed a slight downturn in quotations that persisted in the following months. That keeps us cautious and focused on further improving our operational efficiency, bearing in mind that the effects of the multiple crises we faced over the past years are still present in our day-to-day operations", added Marian Năstase.
The Group's consolidated sales in H1 2024 saw a significant rise, reaching RON 1.697 billion, largely fuelled by improved global demand for aluminium. Sales of aluminium products surged, with processed aluminium products experiencing a 31 per cent increase in sales volume and primary aluminium products witnessing a 16 per cent growth compared to the first half of 2023.
As a result, ALRO posted a net profit of RON 8.4 million in H1 2024, a sharp turnaround from the net loss of RON 164 million reported in the same period last year.
Despite the positive financial results in the year's first half, the second quarter saw a slight downturn in international aluminium market quotations. ALRO continues to navigate the lingering effects of multiple crises over recent years, which have impacted daily operations, particularly in the energy market, leading to price distortions.
In response to these challenges, ALRO has strategically invested to ensure its future growth. The Group continued diversifying its product portfolio to meet customer demands better while enhancing operational efficiency and reducing energy consumption. In H1 2024, ALRO advanced its efforts by relining an additional 21 electrolysis pots with AP12LE technology and launching a new processing line for customised cut-to-size aluminium plates tailored to specific customer specifications.
These initiatives underscore ALRO's unwavering commitment to sustaining growth and profitability in a challenging market environment, instilling optimism among stakeholders about the company's future.
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