ElvalHalcor: At 2.59 billion euros turnover in the 9 month – at 180 million euros EBITDA profits

At 2.59 billion euros ElvalHalcor’s turnover was created in the 9 months of 2024, increased by 1.4%, compared with 2,554.9 million euros in the corresponding period of 2023. At the same time, ElvalHalcor’s sales volume increased by 4.4% in the same period compared to 2023. The main economic elements Organic profitability (a-EBITDA) at EUR 180,0 million High operating cash flows Profit before tax increase at EUR 90,7 million compared to EUR 49,8 million in EUR 9M 23 Reduction in net lending by EUR 171,0 million and working capital by EUR 121,5 million from 30,09.2023 Main operational data Increase in sales volume despite the challenges of the economic environment and reduced demand in most sectors of the economy Increase in metal prices in the third quarter of the year Aluminium Division The Aluminium Branch continued its upward trend with regard to sales volumes, taking advantage of the new investments of the Aluminium Oil Sector, achieving an increase in sales volume by 7.7% (or 8.5% excluding the result of the de-unification of the EIF), mainly for products aimed at rigid packaging, but also for the fol products recovered after the anemic I quarter of 2024. The turnover of the industry was positively affected by the above improvement and was set at EUR 1,303.4 million for the period against EUR 1,259.3 million for 2023. The industry’s organic profitability decreased by 9.3% to EUR 100.2 million in the nine months of 2024 compared to EUR 110,6 million in the corresponding period in 2023 attributed to low processing prices, mainly to the low comparative results of the fol, especially during the first quarter, the blend of sales and the impact of the de-unification of the EIF. Profit before tax of the Branch amounted to EUR 37,0 million, compared to profits of EUR 13,0 million in the corresponding period of 2023 with the results of metal injuring EUR 7.7 million against losses of EUR 34,5 million in the corresponding period last year. The reduced investments of EUR 33,1 million (from EUR 53,3 million in the nine-month period of 2023), the significant improvement in working capital by EUR 60,7 million from 31.12.2023, combined with strong operating profitability, led free cash flows to EUR 119 million. Copper Division The turnover of the Copper Branch was EUR 1,287,0 million compared to EUR 1,295,6 million in the nine months of 2023, marginally reduced by 0.7%. The reduced demand in most sectors of the economy, mainly in the construction and industrial applications sector, affected the sales volumes of the industry by decreasing these by 2.8%. More specifically, the copper pipe sector showed a 4.1% reduction while the copper alloy drilling sector decreased by 5.1%. The sales of the subsidiary Sofia Med for the rolled products were reduced by 2.5%, as a result mainly of the product mix with more thinly added value products, while the copper-extruding products remained at the same levels. The profitability of the Branch was also enhanced in the third quarter of 2024 due to improved product mix, the maintenance of average processing prices and reduced energy costs. At the same time, intensive efforts to reduce costs through the optimisation of the production process, as well as the improved results from scrap utilisation in production, contributed positively to achieving the industry’s economic goals. The adjusted consolidated profits before taxes, interest, depreciation, metal effect and other exceptional revenues and expenses (a-EBITDA) showed a slight increase and were set at EUR 79.8 million compared to EUR 79.1 million in the nine months of 2023. The accounting results of metal for the period were made up of profits of EUR 11.3 million for losses of EUR 8.7 million in the corresponding period last year, positively affecting profits before taxes, which were made at EUR 53.8 million, compared to EUR 33.9 million in the previous period. As regards the investments of the Branch, approximately EUR 15,1 million were allocated, of which EUR 12,5 million involved investments by the subsidiary Sofia Med to optimise production and increase production capacity of high demand and added value finished products. Perspectives ElvalHalcor looks at the future with moderate optimism, despite constant challenges such as energy prices, ongoing geopolitical crises, high reference rates and the volatility of metal prices. Following the significant investment programmes that have increased production capacity, mainly in the aluminium industry, the Group has strengthened its position by achieving high levels of profitability despite negative circumstances. At the same time it has responded successfully to the above challenges by reducing net lending through successful management of working capital. ElvalHalcor remains committed to achieving its strategic objectives, with emphasis on developing innovative products in sectors and products with potential for dynamic growth in the context of global megatrends of the circular economy, transition to climate neutrality, urbanisation, technological developments and sustainable development. In addition, it is in an appropriate position to take advantage of its wide and diversified product portfolio and strategic advantages, such as customer-centric philosophy, high technology and international orientation without dependence on countries or geographical areas, which enable it to take advantage of any future opportunity and strengthen its market position. The significant investments that increased its production capacity contribute to this. This gives ElvalHalcor the opportunity to respond to this dynamic and to maintain its upward trend in the long run, despite any possible short-term effects from more circular sectors in which it operates.