Afarak Group SE reports revenue decrease in H1 2024, but anticipates better market conditions

From GlobeNewswire: 2024-08-16 05:15:00

Afarak Group SE reported a 25.1% decrease in revenue for the first half of 2024, reaching EUR 71.4 million, while the operating profit was EUR 3.1 million. The company’s processed material sales dropped by 7%, with mined tons increasing by 15% compared to the same period last year.

Looking ahead to the second half of 2024, Afarak Group expects Russian material-related sanctions to be fully implemented by year-end. Strong demand in aviation and defense industries may help balance supply and demand levels, while a stabilized price outlook in China is expected. The company also anticipates continuing competition in the low-carbon ferrochrome market.

In contrast, Afarak foresees robust chromite ore market conditions. Strategic investment decisions have been made to boost chromite concentrate production in South Africa, aiming to capitalize on higher chrome ore prices. Despite challenges, the company generated a positive operating profit of EUR 4.2 million in the first six months of 2024.

CEO Guy Konsbruck highlights Afarak’s resilience in a challenging business environment, emphasizing the role of higher chrome ore prices in offsetting low-carbon ferrochrome pricing pressures. The company’s operational efficiency and unique position as a western low-carbon ferrochrome producer continue to underpin its profitability.

Afarak Group SE, listed on NASDAQ Helsinki and the London Stock Exchange, operates in specialty metal alloys in Southern Europe and iron metal business in South Africa. The company plans to drive sustainable growth and capitalize on market opportunities in the metals industry. For more information, visit www.afarak.com.



Read more at GlobeNewswire:: AFARAK GROUP: PUOLIVUOSIKATSAUS H1 2024