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Alro S.A.
Earnings Release • Feb 28, 2025
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Earnings Release
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Slatina H.Q. 116 Pitesti Street 230048 Slatina, Romania T: +40-249-431.901
Bucharest Office 64 Splaiul Unirii 040036 Bucharest, Romania T: +40-21-408.35.00
No. 13/28.02.2025
To: Financial Supervisory Authority Bucharest Stock Exchange
Current report in compliance with the stipulations of the Law no. 24/2017 (republished) and of the FSA Regulation no.5/2018 (including the subsequent amendments) regarding the issuers of financial instruments and market operations
Date of report: 28.02.2025 Name of issuer: ALRO S.A. Headquarters: Slatina, 116 Pitesti Street, Olt County Telephone/ fax number: +40 249 431 901 / +40 249 437 500 Sole registration number at the Trade Register Office: RO 1515374 Trade Register Number: J1991000008282 The European Unique Identifier (EUID): ROONRC.J1991000008282 Legal Entity Identifier (LEI): 5493008G6W6SORM2JG98 Subscribed and paid-in share capital: 356,889,567.5 RON Regulated market on which the issued shares are traded: Bucharest Stock Exchange – Premium Tier Category (market symbol: ALR)
We hereby inform all persons who may be interested about the following important event to be reported:
Press Release
ALRO registered a preliminary consolidated turnover of RON 3.4 billion in 2024
- Strong operational results, on the back of surging sales volumes of high added-value products both in primary and in processed aluminium sectors; The sales for processed aluminium products increased by 30% yoy, while the sales for primary aluminium products rose by 19% yoy;
- The output of liquid aluminium from recycled scrap doubled compared to the previous year, with positive impact on overall costs, partially offsetting the high energy costs;
- Investments aimed at diversifying product's portfolio and optimising overall costs, including the commissioning of the cutting-edge aluminium processing facility, CUTSMART SYSTEMS;
- Comprehensive brand revitalising initiative, highlighting ALRO's transformation over the past 20 years, and the results of the over USD 900 million investments in technology, efficiency and the reduction of the environmental footprint.
Slatina, 28 February 2025 – ALRO S.A. (BSE: ALR, "the Company" or "ALRO"), one of the largest vertically integrated aluminium producers in Europe, measured by production capacity, announces today its Preliminary Consolidated and Separate Financial Results for the year 2024. The Group registered a turnover of RON 3.4 billion in 2024, higher by 20% compared to the previous year. ALRO Group reached a positive EBITDA of RON 369 million, in 2024, compared to a negative EBITDA of RON 164 million in 2023. The Group registered a consolidated net profit of RON 5.7 million in 2024, from a net loss of RON 561.7 million in 2023.
"The 2024 financial results are a direct outcome of our clear long-term vision, focused on strategic investments that resulted in a broadened, customer-centric product portfolio This, coupled with stringent cost control initiatives have been instrumental in driving our improved performance", said Marian NĂSTASE, Chairman of ALRO's Board of Directors. "While the overall market conditions remain challenging, we are confident we positioned ourselves for further growth and long-term sustainability", added Marian NĂSTASE.
Slatina H.Q. 116 Pitesti Street 230048 Slatina, Romania T: +40-249-431.901
Bucharest Office 64 Splaiul Unirii 040036 Bucharest, Romania T: +40-21-408.35.00
Market Update
In 2024, the aluminium quotations increased compared to 2023, with the LME 3-month quotations increasing by 7.5% to USD 2,457/tonne, compared to USD 2,285/tonne, in 2023. Overall, in 2024, the rate cuts implemented by both FED and ECB, and the recovery in demand for both primary and processed aluminium products led to higher quotations and premia. On the other hand, the Romanian Electricity Market showed quotations in the range of 550-565 lei/MWh, with an average base price for 2024, on the day ahead market of 515 lei/MWh, continuing to put pressure on the overall production costs.
Analysts predict a slight rise in demand from key European industries like general engineering, aeronautics, and automotive sectors, as well as the North American market, due to tightened tariffs on Chinese suppliers. However, the full impact of the new tariffs on the EU products it is yet to be determined.
Financial and Operational Update
In 2024, on the back of improved product mix and higher demand on the international markets, ALRO Group sales of aluminium increased significantly compared to 2023. The sales for processed aluminium products surged by 30%, while the sales of primary aluminium products rose by 19%, compared to 2023. This, coupled with investments in increasing the operational efficiency and a strong cost control policy led to positive operational and net result.
The investments in increasing the capacity of the Eco-Recycling Facility resulted in an output of liquid aluminium mainly from recycled scrap of 92,076 tonnes in 2024, compared to 42,613 tonnes in 2023. This resulted in a lower electricity consumption/aluminium tonne.
Moreover, in 2024, ALRO approved an investment programme worth USD 24 million (approx. RON 114 million) in improving the energy efficiency, diversifying the range of value-added products, manufacturing complex products that match the customers' requirements in terms of dimensions, increasing the percentage of high valueadded products in the production mix and reducing the environmental footprint.
The sales & marketing strategy supported the technological investments programme, focusing on potential customers from strategic areas such as aerospace, engineering or auto. And this strategic focus is also reflected by ALRO's new visual identity, launched in 2024, showcasing ALRO's transformation over the past 20 years and reflecting the achievements from more than USD 900 million invested in technology, efficiency, and environmental sustainability. It also looks forward, underscoring ALRO's commitment to robust, highly efficient production processes.
These financial results are available in a separate document on the Company's website, Investor Relations category, Reports section: https://www.alro.ro/en/investor-relations/reports and at the below link:
Marian-Daniel NĂSTASE Marin CILIANU Chairman of the Board of Directors Chief Executive Officer
For further information, please contact: www.alro.ro Florența Ghiță Bucharest Phone: +40 744 644 004 Email: [email protected]
Slatina H.Q. 116 Pitesti Street 230048 Slatina, Romania T: +40-249-431.901
Notes to the Editor:
ALRO Group
The companies' part of ALRO Group are: ALRO S.A. – manufacturer of aluminium, ALUM S.A. – producer of alumina, Vimetco Extrusion S.R.L. – extrusion business line, Conef S.A. – holding and management company, Vimetco Trading – aluminium sales and CCGT- Power Isalnita- associate.
ALRO
ALRO is a subsidiary of Vimetco PLC (Republic of Cyprus), a global, vertically-integrated primary and processed aluminium producer. The structure of ALRO shareholders is: Vimetco PLC (54.19%), Paval Holding (23.21%), Fondul Proprietatea (10.21%) and others (12.39%).
ALRO is one of the largest vertically integrated aluminium producers in Europe, by production capacity, with a production capacity of 265,000 tpa of electrolytic aluminium, an Eco-Recycling capacity 100,000 tpa, resulting in a production of recycled liquid aluminium of 94,000 tpa. The capacity of the Aluminium Cast House is 315,000 tpa and the processing capacity is 140,000 tpa of cold and hot rolled facilities and extrusion division.
The main market for ALRO products is represented by the European Union; the Company exports its products to the USA and to the Asia as well. ALRO is ISO 9001 certified for quality management and has NADCAP and EN 9100 certificates for aerospace production organizations, ALRO products adhere to the quality standards for primary aluminium on the LME, as well as international standards for flat rolled products.
Since 2020, ALRO and Vimetco Extrusion have been members of ASI (Aluminium Stewardship Initiative), an international association that contributes to enhancing sustainability in the global aluminium sector. In 2023, ALRO and Vimetco Extrusion achieved the first certification in Europe under ASI's Third version of Performance Standards.
ALRO AND SUBSIDIARIES
PRELIMINARY CONSOLIDATED AND SEPARATE FINANCIAL RESULTS
for the year ended 31 December 2024
Note: the preliminary financial figures presented in this document are reported in accordance with the Order of the Minister of Public Finance no. 2844/2016, with subsequent amendments, which is as per the International Financial Reporting Standards (IFRS) as adopted by the European Union, except for IAS 21 The Effects of Changes in Foreign Exchange Rates regarding the functional currency, for the provisions of IAS 20 Accounting for Government Grants regarding the recognition of revenues from green certificates, and except for IFRS 15 Revenue from Contracts with Customers regarding the revenues from the taxes related to the distribution grid connection. These exceptions do not affect the conformity with IFRS of the preliminary financial figures of the Group and the Company.
The preliminary financial figures are not audited and do not include the results of the impairment test on investments in subsidiaries. Consequently, the final financial statements for the year 2024 may differ from these.
The functional and the presentation currency is the Romanian leu (RON). This report is prepared in RON thousand, rounded to the nearest unit.
This is a free translation from the original Romanian binding version
Separate statement of profit or loss and other comprehensive income for the year 2024 - unaudited in RON '000, except stated otherwise
| Alro stand alone | Alro stand alone | |||||
|---|---|---|---|---|---|---|
| Q4 2024 | Q4 2023 | Note | 2024 | 2023 | ||
| 826,261 | 565,611 | Revenue from contracts with customers | 1 | 3,202,739 | 2,533,585 | |
| -783,490 | -666,292 | Cost of goods sold | 2 | -3,081,222 | -2,892,227 | |
| 42,771 | -100,681 | Gross result | 3 | 121,517 | -358,642 | |
| -106,272 | -71,348 | General, administrative and selling expenses | -294,521 | -225,597 | ||
| 423 | -114,518 | Impairment of investments in subsidiaries | - | -189,144 | ||
| 56,314 | 100,880 | Other operating income | 4 | 439,519 | 324,112 | |
| -16,623 | -13,106 | Other operating expenses | 5 | -29,262 | -27,959 | |
| -23,387 | -198,773 | Operating result (EBIT) | 6 | 237,253 | -477,230 | |
| -34,229 | -33,687 | Interest expenses | -122,990 | -124,380 | ||
| 1,530 | 3,865 | Other financial income | 5,168 | 18,851 | ||
| -8,157 | -3,505 | Other financial costs | -32,803 | -26,594 | ||
| -51,757 | 24,015 | Net foreign exchange (losses) / gains | 7 | -40,906 | 18,045 | |
| 131 | - | Share of result of associates | 10 | -300 | - | |
| -115,869 | -208,085 | Result before income taxes | 45,422 | -591,308 | ||
| 13,051 | 22,297 | Income tax | 8 | -39,500 | 52,192 | |
| -102,818 | -185,788 | Result for the period | 9 | 5,922 | -539,116 | |
| Other comprehensive income / (expense), net of tax: | ||||||
| Items that will not be reclassified subsequently to profit or loss | ||||||
| -3,310 | -5,244 | Remeasurements of post-employment benefit obligations | -3,310 | -5,244 | ||
| 530 | 839 | Income tax on items that will not be reclassified | 530 | 839 | ||
| -2,780 | -4,405 | Other comprehensive income / (expense) for the period, net of tax |
-2,780 | - -4,405 |
||
| -105,598 | -190,193 | Total comprehensive income / (expense) for the period | 3,142 | -543,521 | ||
| -0.144 | -0.260 | Earnings / (losses) per share Basic and diluted (RON) |
0.008 | -0.755 |
Alro Group
Consolidated statement of profit or loss and other comprehensive income for the year 2024 - unaudited in RON '000, except stated otherwise
| Alro Group | Alro Group | |||||
|---|---|---|---|---|---|---|
| Q4 2024 | Q4 2023 | Note | 2024 | 2023 | ||
| Continuing operations | ||||||
| 865,903 | 608,270 | Revenue from contracts with customers | 1 | 3,408,037 | 2,849,717 | |
| -815,208 | -695,335 | Cost of goods sold | 2 | -3,231,134 | -3,066,081 | |
| 50,695 | -87,065 | Gross result | 3 | 176,903 | -216,364 | |
| -122,952 | -93,816 | General, administrative and selling expenses | -348,727 | -329,108 | ||
| 55,684 | 104,221 | Other operating income | 4 | 472,470 | 346,059 | |
| -21,921 | -104,610 | Other operating expenses | 5 | -51,197 | -164,495 | |
| -38,494 | -181,270 | Operating result (EBIT) | 6 | 249,449 | -363,908 | |
| -35,335 | -34,471 | Interest expenses | -125,560 | -129,419 | ||
| 1,641 | 3,813 | Other financial income | 6,135 | 19,424 | ||
| -8,750 | -3,870 | Other financial costs | -35,027 | -29,120 | ||
| -51,898 | 24,455 | Net foreign exchange (losses) / gains | 7 | -41,108 | -3,810 | |
| 131 | - | Share of result of associates | 10 | -300 | - | |
| -132,705 | -191,343 | Result before income taxes from continuing operations | 53,589 | -506,833 | ||
| 11,606 | 24,042 | Income tax | 8 | -47,889 | 48,430 | |
| -121,099 | -167,301 | Result for the period from continuing operations | 5,700 | -458,403 | ||
| Discontinued operations | ||||||
| - | -367 | Result after tax for the period from discontinued operations | - | -103,343 | ||
| -121,099 | -167,668 | Result for the period | 9 | 5,700 | -561,746 | |
| Other comprehensive income / (expense), net of tax: | ||||||
| Items that will not be reclassified subsequently to profit or loss |
||||||
| -2,893 | -5,412 | Remeasurements of post-employment benefit obligations | -2,893 | -4,804 | ||
| 482 | 857 | Income tax on items that will not be reclassified | 482 | 857 | ||
| Items that may be reclassified subsequently to profit or | ||||||
| - | - | loss: Translation adjustment |
- | 18,880 | ||
| -2,411 | -4,555 | Other comprehensive income / (expense) for the period, | -2,411 | 14,933 | ||
| net of tax | ||||||
| -123,510 | -172,223 | Total comprehensive income / (expense) for the period | 3,289 | -546,813 | ||
| Result attributable to: | ||||||
| -121,070 | -167,094 | Shareholders of Alro SA | 5,687 | -560,264 | ||
| -29 | -574 | Non-controlling interest | 13 | -1,482 | ||
| -121,099 | -167,668 | Total comprehensive income / (expense) attributable to: | 5,700 | -561,746 | ||
| -123,482 | -171,647 | Shareholders of Alro S.A. | 3,275 | -545,335 | ||
| -28 | -576 | Non-controlling interest | 14 | -1,478 | ||
| -123,510 | -172,223 | 3,289 | -546,813 | |||
| Earnings / (losses) per share | ||||||
| -0.170 | -0.234 | Basic and diluted (RON) | 0.008 | -0.785 |
-0.170 -0.234 Basic and diluted (RON) for continuing operations 0.008 -0.642
Separate statement of financial position as of 31 December 2024 - unaudited in RON '000 Alro Stand-alone
| Note | 31 December 2024 | 31 December 2023 | |
|---|---|---|---|
| Assets Non-current assets |
|||
| Property, plant and equipment | 732,266 | 724,656 | |
| Investment properties | 3,705 | 4,040 | |
| Intangible assets | 3,001 | 2,507 | |
| Investments in subsidiaries | 144,178 | 144,178 | |
| Equity accounted investments | 10 | 216,202 | 108,269 |
| Right-of-use assets | 5,438 | 4,950 | |
| Deferred tax asset | 85,299 | 90,032 | |
| Other non-current financial assets | 11 | 182,214 | 149,010 |
| Total non-current assets | 1,372,303 | 1,227,642 | |
| Current assets | |||
| Inventories | 705,678 | 696,233 | |
| Trade receivables, net | 86,076 | 69,690 | |
| Other current financial assets | 4 | 326,247 | 407,309 |
| Other current non-financial assets | 83,274 | 106,479 | |
| Cash and cash equivalents | 423,320 | 160,281 | |
| Total current assets | 1,624,595 | 1,439,992 | |
| Total assets | 2,996,898 | 2,667,634 | |
| Shareholders' Equity and Liabilities | |||
| Shareholders' equity | |||
| Share capital | 370,037 | 370,037 | |
| Share premium | 86,351 | 86,351 | |
| Other reserves | 306,191 | 306,191 | |
| Retained earnings | 104,001 | 645,897 | |
| Result for the period | 9 | 5,922 | -539,116 |
| Total shareholders' equity | 872,502 | 869,360 | |
| Non-current liabilities | |||
| Bank and other loans, non-current | 11 | 1,441,947 | 1,176,067 |
| Leases, non-current | 3,495 | 3,061 | |
| Provisions, non-current | 2,901 | 2,776 | |
| Post-employment benefit obligations | 26,686 | 26,845 | |
| Government grants, non-current portion | 22,125 | 25,419 | |
| Other non-current financial liabilities | 724 | 794 | |
| Total non-current liabilities | 1,497,878 | 1,234,962 | |
| Current liabilities | |||
| Bank and other loans, current | 11 | 83,848 | 295,741 |
| Leases, current | 1,995 | 1,696 | |
| Provisions, current | 26,029 | 3,357 | |
| Trade and other payables | 2 | 428,384 | 192,561 |
| Contract liabilities | 38,609 | 21,957 | |
| Current income taxes payable | 8,695 | 6,456 | |
| Government grants, current portion | 3,454 | 3,442 | |
| Other current liabilities | 35,504 | 38,102 | |
| Total current liabilities | 626,518 | 563,312 | |
| Total liabilities | 2,124,396 | 1,798,274 | |
| Total shareholders' equity and liabilities | 2,996,898 | 2,667,634 |
Alro Group
Consolidated statement of financial position as of 31 December 2024 - unaudited
| in RON '000 | |
|---|---|
| in RON '000 | Alro Group | ||||||
|---|---|---|---|---|---|---|---|
| Note | 31 December 2024 | 31 December 2023 | |||||
| Assets | |||||||
| Non-current assets | |||||||
| Property, plant and equipment | 919,667 | 901,604 | |||||
| Investment properties | 541 | 571 | |||||
| Intangible assets | 3,386 | 2,877 | |||||
| Equity accounted investments | 10 | 216,202 | 108,269 | ||||
| Goodwill | 15,834 | 15,834 | |||||
| Right-of-use assets | 6,945 | 9,690 | |||||
| Deferred tax asset | 89,586 | 95,343 | |||||
| Other non-current financial assets | 11 | 184,612 | 151,293 | ||||
| Total non-current assets | 1,436,773 | 1,285,481 | |||||
| Current assets | |||||||
| Inventories | 877,180 | 884,736 | |||||
| Trade receivables, net | 79,302 | 56,163 | |||||
| Current income tax receivable | 229 | 1,100 | |||||
| Other current financial assets | 4 | 356,552 | 433,205 | ||||
| Other current non-financial assets | 43,151 | 33,980 | |||||
| Restricted cash | 55 | 19,814 | |||||
| Cash and cash equivalents | 431,303 | 206,126 | |||||
| Total current assets | 1,787,772 | 1,635,124 | |||||
| Total assets | 3,224,545 | 2,920,605 | |||||
| Shareholders' Equity and Liabilities | |||||||
| Shareholders' equity | |||||||
| Share capital | 370,037 | 370,037 | |||||
| Share premium | 86,351 | 86,351 | |||||
| Other reserves | 376,103 | 375,866 | |||||
| Retained earnings | 167,216 | 730,129 | |||||
| Result for the period | 9 | 5,687 | -560,264 | ||||
| Equity attributable to shareholders of Alro S.A. | 1,005,394 | 1,002,119 | |||||
| Non-controlling interest | 508 | 494 | |||||
| Total shareholders' equity | 1,005,902 | 1,002,613 | |||||
| Non-current liabilities | |||||||
| Bank and other loans, non-current | 11 | 1,459,413 | 1,176,067 | ||||
| Leases, non-current | 3,853 | 5,963 | |||||
| Provisions, non-current | 26,057 | 27,216 | |||||
| Post-employment benefit obligations | 28,275 | 29,048 | |||||
| Government grants, non-current portion | 33,294 | 30,902 | |||||
| Other non-current financial liabilities | 7,521 | 13,541 | |||||
| Total non-current liabilities | 1,558,413 | 1,282,737 | |||||
| Current liabilities | |||||||
| Bank and other loans, current | 11 | 88,977 | 298,728 | ||||
| Leases, current | 2,400 | 2,782 | |||||
| Provisions, current | 26,568 | 7,854 | |||||
| Trade and other payables | 2 | 443,105 | 240,807 | ||||
| Contract liabilities | 39,161 | 23,578 | |||||
| Current income taxes payable | 10,628 | 6,490 | |||||
| Government grants, current portion | 4,752 | 4,267 | |||||
| Other current liabilities | 44,639 | 50,749 | |||||
| Total current liabilities | 660,230 | 635,255 | |||||
| Total liabilities Total shareholders' equity and liabilities |
2,218,643 3,224,545 |
1,917,992 2,920,605 |
|||||
Separate statement of changes in equity for the year 2024 - unaudited in RON '000
| Share | Share | Other | Retained | Result for | Total | |
|---|---|---|---|---|---|---|
| capital | premium | reserves | earnings | the period | ||
| Balance at 1 January 2023 | 370,037 | 86,351 | 306,191 | 319,331 | 330,971 | 1,412,881 |
| Result for the period | - | - | - | - | -539,116 | - -539,116 |
| Other comprehensive income / (expense) | ||||||
| Remeasurements of post-employment benefits | - | - | - | -5,244 | - | -5,244 |
| Deferred tax on benefits remeasurement | - | - | - | 839 | - | 839 |
| Total other comprehensive income / (expense) | - | - | - | -4,405 | - | -4,405 |
| Total comprehensive income / (expense) | - | - | - | -4,405 | -539,116 | -543,521 |
| Appropriation of prior year result | - | - | - | 330,971 | -330,971 | - |
| Balance at 31 December 2023 | 370,037 | 86,351 | 306,191 | 645,897 | -539,116 | 869,360 |
| Balance at 1 January 2024 | 370,037 | 86,351 | 306,191 | 645,897 | -539,116 | 869,360 |
| Result for the period | - | - | - | - | 5,922 | 5,922 |
| Other comprehensive income / (expense) | ||||||
| Remeasurements of post-employment benefits | - | - | - | -3,310 | - | -3,310 |
| Deferred tax on benefits remeasurement | - | - | - | 530 | - | 530 |
| Total other comprehensive income / (expense) | - | - | - | -2,780 | - | -2,780 |
| Total comprehensive income / (expense) | - | - | - | -2,780 | 5,922 | 3,142 |
| Appropriation of prior year result | - | - | - | -539,116 | 539,116 | - |
| Balance at 31 December 2024 | 370,037 | 86,351 | 306,191 | 104,001 | 5,922 | 872,502 |
Alro Group
Consolidated statement of changes in shareholders' equity for the year 2024 - unaudited in RON '000
| Other reserves | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Share | Share | Other | Translation | Total other | Retained | Result for | Attributable | Non | Total | |
| capital | premium | reserves | reserve | reserves | earnings | the period | to | controlling | shareholder | |
| shareholder | interests | s' equity | ||||||||
| Balance at 1 January 2023 | 370,037 | 86,351 | 375,866 | -18,880 | 356,986 | 324,009 | 410,071 | 1,547,454 | 1,972 1,549,426 | |
| Result for the period | - | - | - | - | - | - | -560,264 | -560,264 | -1,482 | -561,746 |
| Other comprehensive income / (expense) | ||||||||||
| Translation adjustment | - | - | - | 18,880 | 18,880 | - | - | 18,880 | - | 18,880 |
| Remeasurements of post-employment benefits | - | - | - | - | - | -4,808 | - | -4,808 | 4 | -4,804 |
| Deferred tax on benefits remeasurement | - | - | - | - | - | 857 | - | 857 | - | 857 |
| Other comprehensive income / (expense) | - | - | - | 18,880 | 18,880 | -3,951 | - | 14,929 | 4 | 14,933 |
| Total comprehensive income / (expense) | - - |
- - |
- | 18,880 | 18,880 | -3,951 | -560,264 | -545,335 | -1,478 | -546,813 |
| Appropriation of prior year result | - | - | - | - | - | 410,071 | -410,071 | - | - | - |
| Balance at 31 December 2023 | 370,037 | 86,351 | 375,866 | - | 375,866 | 730,129 | -560,264 | 1,002,119 | 494 | 1,002,613 |
| Balance at 1 January 2024 | 370,037 | 86,351 | 375,866 | - | 375,866 | 730,129 | -560,264 | 1,002,119 | 494 | 1,002,613 |
| Result for the period | - | - | - | - | - | - | 5,687 | 5,687 | 13 | 5,700 |
| Other comprehensive income / (expense) | ||||||||||
| Remeasurements of post-employment benefits | - | - | - | - | - | -2,894 | - | -2,894 | 1 | -2,893 |
| Deferred tax on benefits remeasurement | - | - | - | - | - | 482 | - | 482 | - | 482 |
| Other comprehensive income / (expense) | - | - | - | - | - | -2,412 | - | -2,412 | 1 | -2,411 |
| Total comprehensive income / (expense) | - | - | - | - | - | -2,412 | 5,687 | 3,275 | 14 | 3,289 |
| Appropriation of prior year result | - | - | 237 | - | 237 | -560,501 | 560,264 | - | - | - |
| Balance at 31 December 2024 | 370,037 | 86,351 | 376,103 | - | 376,103 | 167,216 | 5,687 | 1,005,394 | 508 | 1,005,902 |
Separate statement of cash flows for the year 2024 - unaudited in RON '000
| Alro Stand-alone | ||||
|---|---|---|---|---|
| Q4 2024 | Q4 2023 | 2024 | 2023 | |
| Cash flow from operating activities | ||||
| -115,869 | -208,085 | Result before income taxes | 45,422 | -591,308 |
| Adjustments for: | ||||
| 22,793 | 23,510 | Depreciation and amortisation | 96,925 | 101,720 |
| -424 | 114,517 | Impairment of investments in subsidiaries | - | 189,144 |
| - | -491 | Impairment of property, plant and equipment | - | -491 |
| 25,011 | 968 | Movement in provisions | 22,672 | -13,625 |
| 1,466 | 17,199 | Change in allowance for impairment of inventory | -59,814 | -19,561 |
| 86 | -73 | Change in allowance for expected credit losses of trade receivables | 332 | -61 |
| 1 | 496 | Losses/(gains) on disposal of property, plant and equipment | 384 | -68 |
| -131 | - | Share of result of associates | 300 | - |
| 39,655 | -25,005 | Net foreign exchange (gains)/ losses on loans revaluation | 35,126 | -18,177 |
| -1,495 | -3,865 | Interest income | -5,118 | -18,851 |
| 34,229 | 33,687 | Interest expense | 122,990 | 124,380 |
| - | - | Dividend income | -15 | - |
| Changes in working capital: | ||||
| -59,641 | -8,900 | Change in inventories | 48,848 | 204,935 |
| 333,631 | -88,589 | Change in trade receivables and other assets | 86,037 | 48,722 |
| 54,394 | 41,692 | Change in trade and other payables | 235,784 | 75,943 |
| -9,313 | - | Income taxes paid | -31,998 | -65,630 |
| -57,490 | -51,439 | Interest paid | -128,483 | -136,202 |
| 266,903 | -154,378 | Net cash generated / (used in) from operating activities | 469,392 | -119,130 |
| Cash flow from investing activities | ||||
| -28,490 | -13,394 | Purchase of property, plant and equipment and intangible assets, net | -95,403 | -66,944 |
| 172 | - | Government grants received | 172 | - |
| - | - | Proceeds from sale of property, plant and equipment | 45 | 68 |
| -108,233 | -108,233 | Acquisition of associates | -108,233 | -108,269 |
| - | - | Dividends received | 15 | - |
| -33,000 | -20,081 | Change in restricted cash | -33,000 | -20,081 |
| 1,495 | 3,865 | Interest received | 5,118 | 18,851 |
| -168,056 | -137,843 | Net cash used in investing activities | -231,286 | -176,375 |
| Cash flow from financing activities | ||||
| 583,872 | 79,011 | Proceeds from loans | 584,833 | 98,020 |
| -352,872 | -71,852 | Repayment of loans and leases | -559,900 | -242,324 |
| 231,000 | 7,159 | Net cash generated / (used in) from financing activities | 24,933 | -144,304 |
| 329,847 | -285,062 | Net change in cash and cash equivalents | 263,039 | -439,809 |
| 93,473 | 445,343 | Cash and cash equivalents at beginning of period | 160,281 | 600,090 |
| 423,320 | 160,281 | Cash and cash equivalents at end of period | 423,320 | 160,281 |
Alro Group Consolidated statement of cash flows for the year 2024 - unaudited in RON '000
| Alro Group | ||||
|---|---|---|---|---|
| Q4 2024 | Q4 2023 | 2024 | 2023 | |
| Cash flow from operating activities | ||||
| -132,705 | -191,343 | Result before income taxes from continuing operations | 53,589 | -506,833 |
| - | -367 | Result before tax for the period from discontinued operations | - | -103,343 |
| Adjustments for: | ||||
| 27,857 | 32,887 | Depreciation and amortisation | 119,507 | 151,993 |
| 1 | 77,087 | Impairment of property, plant and equipment | 1 | 85,177 |
| - | 225 | Impairment of goodwill | - | 63,206 |
| 22,555 | -5,104 | Movement in provisions | 18,714 | -21,986 |
| 17 | 24,219 | Change in allowance for impairment of inventory | -63,801 | -3,015 |
| 158 | 174 | Change in allowance for expected credit losses of trade receivables | 84 | 217 |
| 333 | 483 | Losses/(gains) on disposal of property, plant and equipment | 1,241 | 1,534 |
| 9 | - | Loss on disposal of intangible assets | 9 | - |
| - | - | Loss on disposal of investments | - | 529 |
| -131 | - | Share of result of associates | 300 | - |
| 39,698 | -22,942 | Net foreign exchange (gains)/ losses on loans revaluation | 35,200 | -17,598 |
| -1,544 | -3,913 | Interest income | -5,693 | -19,057 |
| 35,335 | 34,671 | Interest expense | 125,560 | 130,848 |
| - | - | Dividend income | -15 | - |
| Changes in working capital: | ||||
| -66,680 | -29,496 | Change in inventories | 68,849 | 273,879 |
| 352,325 | -50,235 | Change in trade receivables and other assets | 35,779 | 54,679 |
| 61,221 | 50,806 | Change in trade and other payables | 199,935 | 71,228 |
| -11,347 | -402 | Income taxes paid | -36,641 | -74,752 |
| -58,119 | -51,821 | Interest paid | -129,526 | -140,215 |
| 268,983 | -135,071 | Net cash generated by / (used in) operating activities | 423,092 | -53,509 |
| Cash flow from investing activities | ||||
| -33,323 | -19,512 | Purchase of property, plant and equipment and intangible assets, net | -134,318 | -103,296 |
| 7,272 | - | Government grants received | 7,272 | - |
| 484 | 812 | Proceeds from sale of property, plant and equipment | 1,428 | 1,952 |
| - | - | Proceeds from sale of investments | - | 3,125 |
| -108,233 | -108,233 | Acquisition of associates | -108,233 | -108,269 |
| - | - | Dividends received | 15 | - |
| -33,001 | -39,795 | Change in restricted cash | -13,241 | -3,938 |
| 1,512 | 3,865 | Interest received | 5,445 | 18,852 |
| -165,289 | -162,863 | Net cash used in investing activities | -241,632 | -191,574 |
| Cash flow from financing activities | ||||
| 589,231 | 79,112 | Proceeds from loans | 615,806 | 127,378 |
| -362,149 | -72,740 | Repayment of loans and leases | -572,089 | -306,234 |
| 227,082 | 6,372 | Net cash generated / (used in) from financing activities | 43,717 | -178,856 |
| 330,776 | -291,562 | Net change in cash and cash equivalents | 225,177 | -423,939 |
|---|---|---|---|---|
| 100,527 | 497,686 | Cash and cash equivalents at beginning of period | 206,126 | 630,068 |
| - | 2 | Effect of exchange rate differences on cash and cash equivalents | - | -3 |
| 431,303 | 206,126 | Cash and cash equivalents at end of period | 431,303 | 206,126 |
Alro Group
Notes to the preliminary consolidated financial results - unaudited -
1.The year 2024 was marked by significant achievements for ALRO. Refreshing the visual identity of Alro and launching a new range of products carried out by CUTSMART SYSTEMS equipment represented important steps taken in the Group's long-term development strategy this year, that enables it to adapt to the current context and increasingly stringent requirements of the market. Following the investments continuously made over the last years in state-of-the-art technologies, in 2024 the Group consolidated its position as supplier for competitive industries such as: aerospace, automotive and general engineering and has expanded its clients base by concluding long term partnerships not just because of its high-quality, valueadded products but also thanks to its commitment to a sustainable future.
Alro Group ended the year 2024 with a turnover of RON 3,408,037 thousand (20% higher compared to the year 2023), a positive EBIT of RON 249,449 thousand (in 2023 a negative EBIT of RON 363,908 thousand) and a consolidated net profit of RON 5,700 thousand as compared to a net loss of RON 561,746 thousand recorded in 2023.
In 2024, LME aluminum prices have followed an oscillating trend. Although at the beginning of the year the quotations were around 2,200 USD/tonne, after USA and UK imposed new sanctions on Russian metals in April 2024, aluminium prices rose, reaching a maximum level of 2,741 USD/tonne on 29 May 2024, before declining again. Starting the end of August 2024, the LME quotations went up with a more consistent increase being recorded in Q4 2024 when the average 3-month seller LME quotation was 2,603 USD/tonne, higher by 17% as compared to Q4 2023 (2,224 USD/tonne) and by 8% as compared to Q3 2024 (2,421 USD/tonne). Also the average 3-month seller LME quotation for 2024 was 2,457 USD/tonne, i.e. higher by 8% than in 2023 (2,285 USD/tonne).
In 2024, the Primary Aluminium Division reported higher sales by 28% as compared to 2023 (2024: RON 1,089,182 thousand; 2023: RON 850,546 thousand) and in Q4 2024 an increase by 55% was reported as compared to the sales recorded in the same quarter of the previous year (Q4 2024: RON 294,446 thousand, Q4 2023: RON 189,490 thousand). Sales of primary products were not at the level of expectations until the middle of February 2024, due to the stocks accumulated at the end users and reduced level of orders which is an usual situation for the beginning of the year. Still, the trend became positive in February and remained so throughout 2024 and therefore the Group sold by 25,231 tonnes more wire rod in 2024 than in 2023 and by 7,013 tonnes more wire rod in Q4 2024 than in Q4 2023. This evolution was also supported by the tense situation in the Red Sea, which is an important supply route from alternative suppliers in Asia and the Middle East. Since 2023, the commercial shipping in the Red Sea has been significantly disrupted by local attacks. The Red Sea, which connects to the Mediterranean through the Suez Canal, was the primary maritime cargo route from Asia to Europe. In the current situation, shipping companies are re-routing their vessels around Africa via the Cape of Good Hope to avoid the attacks and protect crews and cargo, adding up to two more weeks of transit, as well as visibly higher freight costs. In this regard, European customers have started to secure their supply by looking again at domestic (European) producers, with significantly better predictability in terms of prices and leadtimes. Considering the geopolitical context and the Group's long-term development strategy, the second wire rod mill was restarted in March 2024, with the target of increasing wire rod production and sales by about 80% compared to the previous year. Considering the sanctions imposed on Russian wire rod suppliers in Europe, but also the changes in the supply behaviour of European consumers, in the sense of reorientation mainly towards local producers, the Group succeeded in regaining the client portfolio in the sector of production of low, medium and high voltage aluminium cables. Following a long debate in 2023, EU banned the import of Russian aluminium wire rod in Q1 2024 as part of the sanction package on Russia. Since Russia used to be an important aluminium wire rod supplier for Europe, most of the customers decided to focus on local producers which offer the proximity advantage and less supply chain risks. However, the competition of wire rod producers from Asia and the Middle East remains important. Considering the permanent concern for reducing the carbon footprint, the Group has in progress an important project to include wire rod scrap from customers in the production of wire rods, following the trends shown at global level. Regarding the sales of billets in 2024, they were reduced as a result of the significant increase in the prices of the scrap required for their production. Against the background of the increased emphasis on decarbonisation, the increase in the degree of recycling in the aluminium industry, and implicitly, the demand for scrap, but also the intensification of the export of scrap to Asia due to more attractive prices, the scrap prices in Europe have increased considerably from Q2 2024, affecting the profitability of billets production, despite the billets price increase, a trend that has been maintained since February 2024. Furthermore, the demand deteriorated from August 2024 and premiums decreased by 40-50 USD/tonne at the end of 2024, making the billet production even less efficient. Under these circumstances, in 2024 the billet sales decreased by 10,618 tonnes as compared to 2023 and by 1,475 tonnes in Q4 2024 as compared to Q4 2023.
The sales value from the Processed Aluminium Division increased by 17% in 2024 as compared to the previous year (2024: RON 2,293,745 thousand; 2023: RON 1,965,881 thousand). Following the same trend, in Q4 2024 the revenues obtained from the processed products sales increased by 38% as compared to Q4 2023 (Q4 2024: RON 566,953 thousand; Q4 2023: RON 411,423 thousand). Overall, 2024 was a year of mixed outcomes for the aluminium flat rolled products market. While
navigates the complexities of the global market in the coming years. From these considerations, the Group continued to adapt its sales strategy according to the new realities and to ensure a high dynamism of the product portfolio offered in the market, succeeding in focusing on high value added products sales to the traditional industrial sectors, but also in capturing new demand from new markets. This was made possible through the development of new business lines development, as it is the case of cut to size plates sales, intended primarily for the aeronautical industry, through partnerships with prestigious foreign and domestic companies. In this context the Group sold 29,764 tonnes of flat rolled products more in 2024 than in 2023.
early gains were driven by industrial activity and restocking efforts, the latter part of the year highlighted vulnerabilities due to sector-specific downturns and geopolitcal factors. The industries adaptability to these evolving conditions will be crucial as it navigates the complexities of the global market in the coming years. From these considerations, the Group continued to adapt its sales strategy according to the new realities and to ensure a high dynamism of the product portfolio offered in the market, succeeding in focusing on high value added products sales to the traditional industrial sectors, but also in capturing new demand from new markets. This was made possible through the development of new business lines development, as it is the case of cut to size plates sales, intended primarily for the aeronautical industry, through partnerships with prestigious foreign and domestic companies. In this context the Group sold 29,764 tonnes of flat rolled products more in 2024 than in 2023.
The sales value from the Processed Aluminium Division increased by 17% in 2024 as compared to the previous year (2024: RON 2,293,745 thousand; 2023: RON 1,965,881 thousand). Following the same trend, in Q4 2024 the revenues obtained from the processed products sales increased by 38% as compared to Q4 2023 (Q4 2024: RON 566,953 thousand; Q4 2023: RON 411,423 thousand). Overall, 2024 was a year of mixed outcomes for the aluminium flat rolled products market. While
In the first half of 2024 the sales of flat rolled products saw a steady improvement, driven by heightened industrial activity and restocking among the main European distributors, in the context of depleted metal stocks at the end of 2023. The current geopolitical context continued to exert significant pressure on supply chains – for instance, the still complex tense situation in the Red Sea, which contributed substantially to metal supply sources reconsideration by the main European players. Additionally, the recent announcements in December 2024 from the Chinese authorities with regard to the export tax rebate cancellation has also accelerated this process. On 15 November 2024, the China Ministry of Finance and the State Taxation Administration released the Announcement on the Adjustment of Export Tax Rebate Policies. Effective from 1 December 2024, the 13 percent export tax rebate for refined oil, photovoltaic products, batteries and certain non-metallic mineral products were reduced to 9 percent. In addition, export tax rebates for aluminium and copper products, as well as chemically modified oils and fats were terminated. Starting the second semester however, the market faced a visible downturn in demand, attributed to challenges in the automotive and aerospace industries supply chains. Conversely, the North American market presented opportunities for European exporters. The imposition of increased tariffs on Chinese aluminium imports by the United States created a more favorable environment for European suppliers.
Q4 2024 continued to disappoint in terms of market demand, with European markets struggling due to weak industrial activity. Challenges in the automotive and aerospace sectors, which faced significant difficulties, further impacted the demand for aluminium flat rolled products. The postponement or cancellation of important projects in both the automotive and aerospace industries created further disruptions. On top of this the geopolitical instability also played an important role in exacerbating the market turmoil, adding another layer of unpredictability. The uncertain short-to-medium term outlook forced some rollers to shift their available production capacities to commercial grades market, a shift which led to intense downward pressure on premium levels, resulting in visibly lower prices (for sheets and coils for building and construction sector and plates used primarily in general engineering applications). As demand continued to decline and market unpredictability remained high due to multiple geopolitical factors, the price war showed no signs of abating through the end of the year. The Group's sales activities for flat rolled products were affected by the persistent weakness in European demand and, in an effort to counteract the market difficulties, the Group has intensified the sales efforts to the North American markets, where demand remained notably stronger. Despite visible constraints imposed by volume quotas for import tariff exemption, our presence in the market has visibly increased as compared to the past 2 years. Additionally, Canada and Mexico became more engaged with European aluminium sources, allowing the Group to successfully reactivate previous partnerships and establish new relationships with promising customers. Sales in other overseas markets, including South Korea and Israel, continued to grow year over year, primarily driven by improved demand in the aerospace sector. The ongoing challenges emphasized the importance of regional diversification and market adaptability. Despite these obstacles, the Group's strategic efforts in North America and select overseas markets provided visible resilience and the Group succeeded to sell higher quantities of flat rolled products in Q4 2024 as compared to Q4 2023 (a plus of 7,026 tonnes).
- In terms of Cost of goods sold, the Group reported a 5% higher level in 2024 (RON 3,231,134 thousand) as compared to 2023 (RON 3,066,081 thousand) and increased by 17% in Q4 2024 as compared to the same period of the previous year (Q4 2024: RON 815,208 thousand as compared to Q4 2023: RON 695,335 thousand), as a result of the quantitative increase in sales. Although the price for raw materials purchased by the Group decreased in 2024 versus 2023, the prices for raw materials linked to the LME quotation (such as aluminum scrap and ingots purchased from the market) increased during the year 2024, driven by the upward trend in aluminum prices. At the same time, the energy price decreased as the Group secured lower prices in the acquisition contracts for 2024 as compared to 2023. One of the most important achievements of the Group in 2024 was the increase in recycled scrap liquid aluminium output, thanks to the investment in the Eco-Recycling Facility completed in December 2023. This new development not only helps the Group to meet the requirements for reducing energy consumption, but also significantly contributes to reducing a carbon footprint, an essential objective for Alro Group. In this regard the Group purchased higher quantities of aluminium scrap and ingots from the market (in 2024: about 124,240 tonnes; in 2023: about 85,420 tonnes and in Q4 2024: about 32,670 tonnes; in Q4 2023: about 23,130 tonnes) and increased its quantitative production of liquid aluminium by 49,463 tonnes in 2024 (116%) as compared to 2023 (2024: 92,076 tonnes; 2023: 42,613 tonnes) and by 12,477 tonnes in Q4 2024 (96%) as compared to Q4 2023 (Q4 2024: 25,413 tonnes; Q4 2023: 12,936 tonnes), thus compensating for the idled smelter aluminium pots that were high consumers of energy.
The increase in purchasing of aluminium ingots and aluminium scrap, as an efficient alternative to the electrolytic aluminum production, have had an effect on the Group Trade and other payables, which have increased by 84% on the Consolidated Statement of Financial Position at 31 December 2024 compared to 31 December 2023.
- However, the increase by 5% of the cost of goods sold in 2024, as compared to the same period of the previous year (17% in Q4 2024 as compared to Q4 2023) remained below the 20% increase in sales during the analyzed period (42% in Q4 2024 as compared to Q4 2023), so that the Gross result margin increased to 5% in 2024, respectively 6% in Q4 2024 from negative margins recorded in the same periods of 2023.
The Group witnessed a turnaround in 2024 and in Q4 2024 compared to the similar periods of last year, achieving a positive gross result in 2024 of RON 176,903 thousand compared to a negative one of RON 216,364 thousand reported in 2023 thanks to higher quantities sold, the positive evolution of LME in 2024 and the lower input costs. A similar trend was reported in Q4 2024 when the Group achieved a gross profit of RON 50,695 thousand as compared to a gross loss of RON 87,065 thousand in Q4 2023.
- In 2024, Other operating income totaled RON 472,470 thousand (compared to RON 346,059 thousand in 2023), primarily comprising RON 302,382 thousand of government compensations for indirect emissions included in the electricity price accrued for the year 2024. This amount was partially offset by RON 53,621 thousand (2023: RON 77,629 thousand) representing the negative variance recognised in the current reporting period. The variance resulted from the difference between the government compensation for 2023 accrued under Other current financial assets as at 31 December 2023 of RON 373,980 thousand, and the actual amount received in December 2024, which was of RON 320,359 thousand. The Group is entitled to government compensations for indirect emissions included in the energy price, in accordance with EU Emissions Trading Scheme (ETS) and the European Directive adopted in the Romanian legislation. The compensation scheme is part of Europe's (and also Romania's plans) to sustain the energy-intensive companies due to the high electricity prices which embed the indirect emissions costs from energy producers.
Additionally in 2024, the Group recorded revenues from the sale of carbon dioxide emission certificates of RON 195,948 thousand (out of which in Q4 2024: RON 73,697 thousand) and in 2023 of RON 8,997 thousand (out of which in Q4 2023: RON 2,501 thousand).
-
In 2024, the category Other operating expenses included the depreciation of idle plants of RON 18,696 thousand (in 2023: RON 36,593 thousand), mainly for the idled electrolysis pots and alumina plant (Q4 2024: RON 4,312 thousand; Q4 2023: RON 8,945 thousand), as well as costs recognized by Alum following the production capacity shutdown in August 2022, amounting to RON 11,904 thousand in 2024 versus RON 35,700 thousand in 2023, and RON 2,252 thousand in Q4 2024 versus RON 6,574 thousand in Q4 2023.
-
The Group's Operating result (EBIT) for 2024 significantly increased from a loss of RON 363,908 thousand registered in 2023 to a profit of RON 249,449 thousand, as a result of the management efforts to optimise the operations, increase the sales of high value added products, diversify the product mix as well as a result of the rising quotations of aluminium during the analysed period. However, in Q4 2024 the Group recorded a negative EBIT of RON 38,494 thousand, but much better than the negative EBIT of RON 181,270 thousand in Q4 2023 since the Group had to negatively adjust its operating result by RON 53,621 thousand for the difference between the government compensation accrued in 2023 and the actual amount received in December 2024, as explained above.
-
Net foreign exchange gains / (losses) are mainly amounts arising from the revaluation of the Group's loans and other foreign currency liabilities. In 2024, the Group recorded a net foreign exchange loss of RON 41,108 thousand, compared to a loss of RON 3,810 thousand in 2023, driven by the depreciation of the Romanian Leu against the US dollar. The negative FX impact was particularly significant in Q4 2024, with a loss of RON 51,898 thousand, whereas Q4 2023 saw a notable gain of RON 24,455 thousand, supported by the appreciation of the Romanian Leu at the end of 2023.
-
According to the provisions of law no. 296/2023, entities with a turnover exceeding EUR 50 million in the previous year and a Profit tax lower than 1% of their calculated turnover (minimum turnover tax) are required to pay income tax at the level of the minimum turnover tax. The law applies in respect of the financial year beginning on 1 January 2024. In 2024, the Group calculated the minimum turnover tax based on this law, which exceeded the profit tax and, as a result, the Group recognized an income tax expense of RON 40,849 thousand (Q4 2024: RON 10,063 thousand), representing the minimum turnover tax, compared to a current profit tax expense of RON 10,230 thousand in 2023 (Q4 2023: RON 5,496 thousand).
9.The Group's strategy to diversify its products portfolio, focusing on high added-value products, materialized in 2024 in an increase in the production of flat rolled products (by 51%) and wire rod (by 56%) as compared to the year 2023. This follows the increase in order volumes, as a result of Group's capacity to supply high-quality products that meet its customers' requirements. At the same time the Group remained committed to its long term strategy of sustainable growth and thanks to the investments in latest generation technologies, implemented for developing the aluminium scrap remelting capacities, the quantity of recycled aluminium increasing significantly in 2024 as compared to 2023. Aside from successfully minimising ALRO's carbon footprint, the recycling operations consolidates the Group's image on the international markets, in terms of circular economy and decarbonization efforts. In 2024 the Group's achievements translated in a net profit of RON 5,700 thousand, as compared to a net loss recorded in 2023 of RON 561,746 thousand. However, intense competition which increased pressure on sales prices, demand which had a negative trend towards the end of the year, the interest rates still at high levels, the 1% minimum turnover tax as well as the adjustment of indirect compensation mentioned above limited the net result in 2024 and in Q4 2024 when the Group reported a net loss of RON 121,099 thousand, but lower than the net loss of RON 167,668 thousand recorded in the same quarter of 2023.
in RON '000 in RON '000 in RON '000 in RON '000 Q4 2024 Q4 2023 2024 2023 -121,099 -167,668 Result for the period 5,700 -561,746 1 77,087 Plus/(minus) charge/ (reversal) of non-current assets impairment expense/(income) 1 85,177 - 225 Plus charge of impairment of goodwill - 63,206 -21,592 -29,538 Plus/(minus) deferred tax expense 6,239 -58,660 -142,690 -119,894 Adjusted net result 11,940 -472,023
Reconciliation of adjusted net result with the net result of Alro Group:
-
Equity accounted investments: in 2023, the company CCGT Power Isalnita SA ("CCGT Power") was registered, with Complexul Energetic Oltenia holding an interest of 59.9% and Alro SA holding 40.1% of the shareholders equity. At 31 December 2023, Alro' contribution amounted to RON 108,269 thousand and in November 2024 this amount of share capital was increased, with Alro's additional equity participation of RON 108,233 thousand reaching overall the equivalent in RON of EUR 43,514 thousand, which represents 40.1% of the new company's share capital. The Group's interest in CCGT Power is accounted for by using the equity method.
-
Bank and other loans: In December 2024, the Parent Company obtained a USD 40,000 thousand CAPEX loan from a commercial bank. The loan has a maturity of 7 years, with a grace period of 2 years for the payment of instalments. At 31 December 2024, the drawn down amount from this loan was RON 71,652 thousand (the equivalent to USD 15,000 thousand). In December 2024, the Parent Company fully repaid, ahead of schedule, a RON 470,000 thousand facility for working capital, this loan having been contracted in March 2022 from a syndicate of banks. The cash pledged in relation to this facility of RON 47,000 thousand was recorded at 31 December 2023 in the category Other non-current financial assets. In December 2024, the Parent Company also obtained a State guaranteed loan of RON 400,000 thousand for working capital from a syndicate of banks. The facility is repayble starting the first quarter of 2025 and until December 2028, in 16 equal quarterly installments plus a balloon payment of RON 195,000 thousand at the last payment installment. The facility is collateralized with a state guarantee for 80% of the amount.This loan was fully drawn down at 31 December 2024. Cash collateral of RON 80,000 thousand pledged in relation to this loan having maturity more than one year was classified at 31 December 2024 under Other non-current financial assets.
-
As of the date of this report, the Group is in progress with the annual impairment test analysis. Depending on the result of these analyses, the final figures for 2024 may differ from the preliminary ones. Based on the preliminary outcome of the impairment test analysis, which will be subsequently finalised and audited, the management does not expect any negative impact occurring from these impairment assessments.
Strategic investments
the customers' requirements.
There are several investing projects started or followed in the 2024, out of which the following ones have a great weight in the Group strategy to align to the most recent standards of sustainability and good practices:
In March 2024 the Group put into operation the project "Improve Alro SA product efficiency by purchasing an aluminium plate processing plant able to process Alro SA products as close as possible to the customers size requirements" (CUTSMART SYSTEMS) , which was started in the end of 2022. The construction work for the associated hall and product warehouse was completed in October 2024. The total amount invested for this project was of RON 15,006 thousand. The Group will be able to
produce complex flat rolled products, with very high value added, having the dimensions and tolerances defined in line with
completed in October 2024. The total amount invested for this project was of RON 15,006 thousand. The Group will be able to produce complex flat rolled products, with very high value added, having the dimensions and tolerances defined in line with the customers' requirements.
In March 2024 the Group put into operation the project "Improve Alro SA product efficiency by purchasing an aluminium plate processing plant able to process Alro SA products as close as possible to the customers size requirements" (CUTSMART SYSTEMS) , which was started in the end of 2022. The construction work for the associated hall and product warehouse was
In April 2024, the Group's subsidiary, Vimetco Extrusion, completed the instalation of an automatic packaging line for the extruded aluminium profiles and in Q3 2024 the subsidiary implemented the following steps: the transition from manual packaging to automatic packaging, staff training, the production acceleration process. The final commissioning took place in Q3 2024 after the equipment reached the contracted parameters. The amount spent for the investment was of RON 31,818 thousand. This project benefited from a grant of RON 7,100 thousand, from Iceland, Lichtenstein, and Norway through the EEA Grant Financial Mechanism 2014-2021 under the program "SME Development in Romania," area of interest: Green Innovation in industry, Blue Growth, and ICT. Through this investment, Vimetco Extrusion takes further steps to increase the added value offered to its stakeholders. It also represents proof of sustainably using the available natural resources, reducing energy consumption rates, and increasing operational efficiency while diversifying its portfolio of customized solutions offered. Moreover, the project's results consist of growing the company's turnover and reducing the CO2 emission, fuel consumption and waste generated in the production process.
In 2024 the Group continued the investment started in October 2023 for purchasing an aluminium aging furnace with electric heating from a renowned manufacturer of furnaces for the aluminium industry. The project objective is to increase the output of high and very high value added products. This state-of-the-art electric furnace will replace three furnaces powered by natural gas with the aim of streamlining the heat treatment operations within the Processed Aluminium Division and represents an important step towards achieving Alro's goal of becoming a greener producer. The total estimated value of the investment, including equipment, installation and commissioning, is of RON 13,136 thousand.
In 2024 the Group also continued the investment project started in 2023 for the acquisition of a double-sided conductivity scan for aluminum plates. The benefits obtained from the implementation of this investment project are in line with Group strategy regarding the operational safety and increase of the high value added production share (especially aerospace products) in the total production mix. The project is expected to be commissioned in September 2025 and its total estimated value will be of RON 9,554 thousand.
In 2024 the Group started the implementation of the project "Long-term development of ALRO SA through achievement of sustainable investments" achieved through the Minimis Aid Scheme "Support granted for the implementation of the Program for increasing the industrial products competitiveness". The objective of the financing project was to equip the testing and calibration laboratories existing in Alro with state-of-the-art equipmpent in line with the requirements of the Community standards and provisions in the field of application. The total value of the project was of RON 2,068 thousand and benefited from Romanian state budget financing of RON 895 thousand (out of which RON 172 thousand were collected by 31 December 2024 and the difference of RON 723 thousand was collected in January 2025). The project was completed in December 2024.
Chief Executive Officer Chief Financial Officer
Marin Cilianu Genoveva Nastase