Sweden-based Gränges AB, a global leader in aluminium rolling and recycling, announced its production and financial results for 2024, reporting record-high sales volume and earnings. Gränges operates recycled-content aluminium facilities in Sweden, China, Poland, and the United States. In the US, it operates a scrap-fed melt shop and casting facility, commencing in 2023.
In the fourth quarter of 2024, Gränges sold 130.3 thousand tonnes of recycled and rolled aluminium products, up by 21 per cent Y-o-Y, and earned SEK 6,184 million (US$558.205 million). For the full year, the sales volume amounted to 505.8 thousand tonnes, reflecting a 9.2 per cent rise Y-o-Y, valued at SEK 23,506 million (US$2,118.27 million).
With the increase in sales volume, the company's adjusted operating profit for Q4 climbed to SEK 324 million (US$29.2 million) from SEK 245 million (US$22.08 million), while operating profit rose to SEK 276 million (US$24.87 million) from SEK 245 million (US$22.08 million). For the full year, adjusted operating profit grew to SEK 1,571 million (US$141.57 million) from SEK 1,536 million (US$138.42 million), whereas operating profit declined to SEK 1,523 million (US$137.25 million) from SEK 1,576 million (US$142.02 million).
Profit for Q4 increased to SEK 175 million (US$15.77 million) versus SEK 108 million (US$9.73 million) in the previous year, while the company's full-year profit stood restrained at SEK 1,010 million (91.02 million).
In its financial report, Gränges AB also revealed its carbon emissions intensity (scope 1,2 & 3) decreased to 7.8 tonnes CO2e/t in Q4 2024 from 8.5 tonnes CO2e/t in the previous year, while its full-year carbon emissions intensity dropped to 7.5 tonnes CO2e/t from 8.4 tonnes CO2e/t.
Source: Gränges AB
CEO Jörgen Rosengren credited the company's financial growth to the successful acquisition of a 160,000-tonne production facility in Shandong, China, and the rapid ramp-up of operations there. He further explained that their goal was to achieve break-even as quickly as possible, which led them to aggressively capture market share in lower-margin product segments.
Jörgen Rosengren stated: "During the fourth quarter, customer demand improved year-on-year in most markets. Our sales efforts also continued to pay off. Sales to automotive customers were stable in Europe and decreased in Americas but grew in Asia thanks to market share gains. Sales to HVAC customers increased significantly, as an impending regulatory change led to unusually strong HVAC manufacturing activity in Americas. Sales to other customer categories saw strong growth as well, driven by more normal downstream inventory levels and significant market share gains. In summary, all regions contributed to an impressive 21 percent sales volume growth, propelling our full-year sales volume to a record 506 thousand tonnes."
Gränges has also briefed a long-term plan for sustainable growth in its 2024 report, highlighting three focus areas - restoring profitability, strengthening its position as the world's leading aluminium rolling and recycling company, investing in sustainable growth, and achieving net-zero by 2040.
Source: Gränges AB
CEO Jörgen Rosengren credited the company's financial growth to the successful acquisition of a 160,000-tonne production facility in Shandong, China, and the rapid ramp-up of operations there. He further explained that their goal was to achieve break-even as quickly as possible, which led them to aggressively capture market share in lower-margin product segments.
