Grupa Kety, the Polish aluminium extruder has reported with a record rise of sales in the Q2. The aluminium firm secured new export markets from suppliers that were forced to axe production due to the COVID-19 pandemic.
Sales of Grupa Kety surged by 5% on the year to 22,000 tonnes in April-June regardless of a huge slump in deliveries to the automotive and transport sectors. However, the company was operating at 96% of capacity all over the quarter.
The key driver for the sales to rise as it came from growth in exports to wholesalers in Germany. It obtained the market share from Italian producers that were forced to reduce output because of national lockdown measures. A depreciation in the zloty against the euro further boosted Grupa Kety's advantage over Eurozone manufacturers.
German exports stood at 19% of the company’s sales in Q2, rising from 12% of the previous year. Although the domestic market remained its major, sales dropped to 59% from 65% of the previous year.
Sales to home appliance manufacturers were also higher, while shipments to some niche manufacturers such as bicycles and car racks benefited from a change in consumer demand because of the pandemic.
Grupa Kety remains hopeful that demand will remain robust for the rest of 2020, despite concerns about a second wave of the virus in Europe, as its sales to the automotive sector have so far recovered significantly in the Q3.
The company projects lower margins because of increased competition as Italian producers have resumed production and aluminium prices rose. Grupa Kety anticipates aluminium prices remaining strong in the coming months, but a fall in the zloty against the US dollar in the past few weeks has partially offset the higher aluminium prices.
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