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Gränges Interim / Quarterly Report 2024
3055_ir_2024-07-12_eadb33f4-0b22-447b-93c6-541c9308f37b.pdf
Interim / Quarterly Report
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A record quarter
Half-year report 2024
Highlights
Second quarter 2024 First half-year 2024
- Sales volume increased by 8.6 percent to 130.9 ktonnes (120.5) and net sales increased to SEK 6,145 million (6,008).
- Adjusted operating profit1 increased to SEK 471 million (450).
- Adjusted operating profit per tonne amounted to 3.6 kSEK (3.7).
- Operating profit was SEK 471 million (450) and included no items affecting comparability (-).
- Profit for the period amounted to SEK 314 million (316).
- Diluted earnings per share amounted to SEK 2.94 (2.97).
- Adjusted cash flow before financing activities2 was SEK 399 million (779).
- Total carbon emissions intensity (scope 1+2+3)3 decreased to 7.1 tonnes CO2 e/tonne (8.4).
-
The share of sourced recycled aluminium increased to 46.6 percent (41.1).
-
Sales volume increased by 5.1 percent to 252.8 ktonnes (240.6) and net sales decreased to SEK 11,573 million (11,976).
- Adjusted operating profit1 amounted to SEK 827 million (851).
- Adjusted operating profit per tonne amounted to 3.3 kSEK (3.5).
- Operating profit was SEK 827 million (851) and included no items affecting comparability (-).
- Profit for the period amounted to SEK 551 million (570).
- Diluted earnings per share amounted to SEK 5.16 (5.35).
- Adjusted cash flow before financing activities2 was SEK 494 million (1,066).
- Financial net debt was SEK 3,031 million on June 30, 2024 (SEK 2,741 million on December 31, 2023), corresponding to 1.3 times adjusted EBITDA (1.1 times on December 31, 2023).
- Total carbon emissions intensity (scope 1+2+3)3 decreased to 7.3 tonnes CO2 e/tonne (8.6).
- The share of sourced recycled aluminium increased to 46.0 percent (39.3).
Strategy & long-term targets
Gränges has established a long-term plan for sustainable growth, Navigate, involving three steps: to restore profitability, to build a world-leading aluminium technology company, and
Profit growth
Average annual operating profit growth
10%
Profitability Return on capital employed
15%
Capital structure
Financial net debt normally between
1–2x EBITDA
Dividend Percentage of profit for the year
30–50%
to invest in sustainable growth. The plan also targets continued fast progress toward net-zero by 2040. All this is based on Gränges' strong company culture and committed employees.
Climate
Scope 1+2+3 emissions by 2040
Circularity Recycled volume by 2030
HIGHLIGHTS
| Summary | Q2 Jan– Jun |
12 months rolling |
Full year | |||||
|---|---|---|---|---|---|---|---|---|
| SEK million | 2024 | 2023 | 2024 | 2023 | Jul 2023– Jun 2024 |
2023 | ||
| Sales volume, ktonnes | 130.9 | 120.5 | 8.6% | 252.8 | 240.6 | 5.1% | 475.4 | 463.2 |
| Net sales | 6,145 | 6,008 | 2.3% | 11,573 | 11,976 | -3.4% | 22,115 | 22,518 |
| Adjusted operating profit¹ | 471 | 450 | 4.7% | 827 | 851 | -2.8% | 1,512 | 1,536 |
| Adjusted operating profit per tonne, kSEK | 3.6 | 3.7 | -0.1 | 3.3 | 3.5 | -0.3 | 3.2 | 3.3 |
| Operating profit | 471 | 450 | 4.7% | 827 | 851 | -2.8% | 1,552 | 1,576 |
| Profit for the period | 314 | 316 | -0.8% | 551 | 570 | -3.3% | 991 | 1,010 |
| Earnings per share diluted, SEK | 2.94 | 2.97 | -0.03 | 5.16 | 5.35 | -0.19 | 9.28 | 9.48 |
| Adjusted cash flow before financing activities² | 399 | 779 | -48.7% | 494 | 1,066 | -53.7% | 2,254 | 2,826 |
| Financial net debt | - | - | - | 3,031 | 3,867 | -836 | 3,031 | 2,741 |
| Financial net debt/Adjusted EBITDA¹ | - | - | - | - | - | - | 1.3 | 1.1 |
| Return on capital employed, % | - | - | - | - | - | - | 11.9 | 12.2 |
| Total carbon emissions intensity (scope 1+2+3), tonnes CO2 e/tonne³ |
7.1 | 8.4 | -15% | 7.3 | 8.6 | -16% | 7.7 | 8.4 |
| Share of sourced recycled aluminium, % | 46.6 | 41.1 | 5.5 ppt | 46.0 | 39.3 | 6.7 ppt | 45.0 | 41.6 |
1 Adjusted for items affecting comparability, see Note 5 for further information.
3 GRÄNGES AB (PUBL) HALF-YEAR REPORT 2024
2 Adjusted for expansion investments and acquisitions, see alternative performance measures for further information.
3 Carbon emissions (scope 1+2+3) are defined in accordance with the Greenhouse Gas Protocol, see Definitions for further information.
Gränges is a global leader in aluminium rolling and
recycling in selected niches. We're committed to creating circular and sustainable aluminium solutions in partnership with our customers and suppliers – for a better future. Our solutions help customers grow and transition to climate neutrality. They are used for efficient climate control in transportation and buildings, electrification and battery components, recyclable packaging, and more.
Stability and profitability
We now have a good foundation for further growth, and for building a truly leading company.
In the second quarter, market demand was muted, but stable. Both the backlogs and overstock that characterized last year are now more or less gone. Relative to 2023, the automotive market was somewhat weaker, and the HVAC market normalized.
Our strong sales focus enabled us to return to growth in the beginning of the year despite weak demand. In the second quarter, those efforts yielded even better results. New business was a key driver behind our 9 percent sales volume growth in the quarter.
Record-high operating profit and good cash flow
We continued as planned to compensate most of the customer price pressure and wage inflation with productivity. Combined with our good volume growth, this resulted in a 5 percent increase in operating profit to SEK 471 million, our best quarterly result ever.
We also continued to improve working capital efficiency, offsetting the increase in the aluminium price. This kept our net debt stable in the quarter even after funding capacity expansion and dividend payment. Our balance sheet thus remains strong, which creates stability and flexibility.
Finalizing the first step of our strategy – a strong foundation for growth
Our strategic plan, Navigate, was developed in 2021. Its first step aimed at restoring good profitability, and at completing our multi-year capacity investment programs in the US, Europe, and Asia. We intend to finalize this first step of Navigate in 2024. Our increased production capacity, improved profitability and stronger balance sheet together form a solid foundation for growth. Based on this foundation, we will now gradually shift focus to our strategy's second step – "Build" – which aims at building a leading company in our industry.
New partnership to support electrification growth
Over the past two years, our electrification solutions have been in high demand in Asia, resulting in strong volume growth and a high capacity utilization locally. We have therefore agreed to extend our strategic partnership in China with Shandong Innovation Group. The agreement gives Gränges ownership of a production facility in the Shandong province through an equity transaction. The new partnership enables us to continue to take market share and grow in the Asian electrification market. It will take some time to realize these benefits, but we expect a marginally positive contribution to our earnings per share in 2025. Read more about the new partnership on page 6.
Carbon footprint and recycling on record levels
Our long-term focus on sustainability resulted in new records, for instance an all-time-low carbon emissions intensity. In fact, we are already now in line with our 2025 climate goals, more than a year ahead of time. Record-high recycling contributed to our low emissions, but circularity is also a strategic objective in its own right. The 230 ktonnes we have recycled in the last year in cooperation with our downstream and upstream partners put us halfway to our 2030 circularity goal.
Stable outlook for the third quarter
End-customer markets remain hard to predict but appear comparatively stable in the near term. We expect our continued focus on new business to drive a mid-to-high single-digit percentage volume growth in the third quarter compared to 2023. We also intend to offset any further price pressure and wage inflation with further productivity improvements.
People make the difference
I am very proud of the competence, commitment, and stability that our global team has continued to show during these very turbulent last few years. Having demonstrated a new level of performance also gives us increased selfconfidence. We now have a good foundation for further growth, and for building a truly leading company. I'd like to close by again thanking all my colleagues throughout the Gränges family for your outstanding work.
Jörgen Rosengren President and CEO
Coil storage at Gränges' production facility in Newport.
PARTNERSHIP
Strategic partnership to support continued electrification growth in Asia
Gränges has experienced strong demand for its high-quality, sustainable electrification solutions in Asia. To strengthen its competitiveness and gain further market share, Gränges is expanding its strategic partnership with Shandong Innovation Group (SIG).
Through a new agreement signed in May 2024, Gränges will take ownership of an efficient, low-cost casting and hot-rolling facility in the Shandong province and obtain access to scalable downstream capabilities. The agreement further provides access to nearby supply of low-carbon recycled and primary aluminium.
In return, SIG will obtain shares in Gränges' subsidiary in China representing 20 percent of the total registered capital after completion of the transaction. The equity transaction has no impact on cash and is expected to contribute marginally to Gränges' earnings per share from 2025.
Applications for Gränges' electrification solutions:
- Battery cooling plates
- Battery casings
- Battery cathode foil
- HEX materials for electric vehicles
For more details, see press release on granges.com.
Strengthening the scale, efficiency and sustainability of our Asian supply chain is essential for our ability to gain further market share in low-carbon and circular aluminium solutions for the EV and battery markets.
Colin Xu President Gränges Asia
Gränges Group
- Stable conditions in most end-customer markets
- New business and cost productivity supported earnings growth
- Improved working capital efficiency continued to strengthen cash flow
Market development
Gränges is an aluminium technology company and a leading global supplier of rolled aluminium products and solutions for thermal management systems, speciality packaging and selected niche applications. Gränges' key end-customer markets are Automotive currently representing 42 percent, HVAC representing 18 percent, Speciality packaging and Other niches representing 18 percent and 22 percent respectively of sales volume for the last 12 months.
Short-term sales to the Automotive industry are primarily driven by the number of vehicles produced. Medium and long term, the increasing share of electric vehicles is expected to have a further positive impact on demand for Gränges' products. Sales to the HVAC industry are influenced in the short term by consumer confidence and the general activity within building and construction. In the medium and long term, increased requirements on energy efficiency of HVAC units are expected to have a further positive impact on the demand for Gränges' products. The demand for materials for Speciality packaging tends to be relatively stable in its nature and sales to Other niche applications are largely driven by the general economic activity.
In the second quarter 2024, demand in most of Gränges' end-customer markets stabilized. Sales to automotive customers remained stable compared with the same quarter last year. The positive development in Eurasia was offset by lower sales in Americas. Sales of HVAC materials increased by 4 percent, following a return to a typical seasonal pattern on the back of normalized inventory levels at customers. Sales of Speciality packaging materials increased by 13 percent in the second quarter, and sales to Other niches increased by 28 percent following a normalization of downstream inventory levels in Europe and new business.
Sales development
Gränges' sales volume in the second quarter 2024 increased by 8.6 percent to 130.9 ktonnes (120.5) while net sales increased by 2.3 percent to SEK 6,145 million (6,008) compared to the same quarter previous year. A lower average fabrication price had a negative impact on net sales in the quarter. Changes in foreign exchange rates had a net positive effect of SEK 14 million.
For Gränges Americas, the external sales volume increased by 7.1 percent to 60.5 ktonnes (56.5) while external
| End-customer | Automotive | HVAC | Speciality packaging |
Other niches | Total |
|---|---|---|---|---|---|
| Gränges Americas | -17% | 3% | 13% | 38% | 7% |
| Gränges Eurasia | 4% | - | 14% | 24% | 10% |
| Total | 0% | 3% | 13% | 28% | 9% |
| Share of total sales volume, rolling 12-months | 42% | 18% | 18% | 22% | 100% |
External sales volume growth Q2, 2024
net sales decreased to SEK 3,016 million (3,046) in the second quarter 2024. The increase in sales volume was mainly due to higher sales to Other niches driven by new business. Changes in foreign exchange rates had a net negative effect on net sales of SEK 4 million.
For Gränges Eurasia, the external sales volume increased by 10.0 percent to 70.3 ktonnes (63.9) and external net sales increased to SEK 3,128 million (2,962) in the second quarter 2024. The increase in sales volume was primarily driven by higher sales to Other niches due to normalization of inventory levels in Europe as well as by positive development of demand from Automotive in Asia. Changes in foreign exchange rates had a net positive effect on net sales of SEK 18 million.
During January–June 2024, Gränges' sales volume increased by 5.1 percent to 252.8 ktonnes (240.6) compared to the corresponding period previous year. Net sales amounted to SEK 11,573 million (11,976) and changes in foreign exchange rates had a net positive effect on net sales of SEK 66 million.
For Gränges Americas, the external sales volume was 116.6 ktonnes (116.7) and external net sales amounted to SEK 5,670 million (6,157) during the first half of 2024. For Gränges Eurasia, sales volume increased to 136.3 ktonnes (124.0) and external net sales increased to SEK 5,903 million (5,819).
Operating profit
Adjusted operating profit for the second quarter 2024 increased to SEK 471 million (450), corresponding to adjusted operating profit per tonne of 3.6 kSEK (3.7). Higher sales volume, improved cost productivity and good metal management more than offset the lower average fabrication price. Changes in foreign exchange rates had a net negative impact of SEK 15 million in the quarter. Adjusted operating profit for the second quarter 2023 included SEK 40 million related to positive timing effects from surcharge clauses in customer contracts. No surcharge clause timing effects occurred in the second quarter 2024.
Operating profit for the second quarter 2024 increased to SEK 471 million (450) and includes no items affecting comparability (-). For further information, see Note 5.
During the period January–June 2024, adjusted operating profit decreased to SEK 827 million (851), and adjusted operating profit per tonne was 3.3 kSEK (3.5). Changes in foreign exchange rates had a net negative impact of SEK 17 million for the first half of 2024 compared with the corresponding period previous year. Operating profit amounted to SEK 827 million (851) and includes no items affecting comparability (-). For further information see Note 5.
Profit for the period and earnings per share
Profit before tax for the second quarter 2024 increased to SEK 399 million (366). Profit or loss from associates and joint ventures amounted to SEK -7 million (1) and related primarily to the recycling and casting operation that is currently being established in Yunnan, China. Finance income and costs was SEK -66 million (-85). Income tax for the second quarter 2024 was SEK -85 million (-50) which corresponds to an effective tax rate of 21 percent. Excluding withholding tax on a dividend from the Chinese subsidiary to Gränges AB as well as certain positive tax effects, the effective tax rate during the second quarter of previous year was 17 percent. The profit for the period was SEK 314 million (316) and diluted earnings per share was SEK 2.94 (2.97).
For the period January–June 2024, profit before tax increased to SEK 692 million (681). Finance income and costs was SEK -130 million (-170). Income tax for the period was SEK -142 million (-112). In accordance with the OECD's guidelines mandating a global minimum tax rate of 15 percent, Gränges has accounted for a top-up tax of SEK 6 million during the first half of 2024. The effective tax rate was 20 percent in the period. Excluding the withholding tax and
Sales volume Adjusted operating profit
the positive tax effects, the effective rate during the first half previous year was 19 percent. The profit for the period decreased to SEK 551 million (570) and diluted earnings per share decreased to SEK 5.16 (5.35).
Cash flow
Cash flow from operating activities was SEK 474 million (830) in the second quarter 2024. Changes in working capital resulted in a negative cash flow impact of SEK 47 million. The adverse effects from increased sales volume and a higher aluminium price were largely offset by working capital efficiency improvements, primarily driven by improved inventory turnover.
Cash flow from investing activities fully relates to capital expenditure and amounted to SEK -337 million (-197) in the quarter. Of this, SEK -75 million referred to investments to maintain and improve efficiency in current production facilities and SEK -262 million referred to investments related to expansion of the production facilities.
Cash flow before financing adjusted for expansion investments and acquisitions amounted to SEK 399 million (779) in the second quarter 2024. Cash flow from financing activities was SEK 93 million (-416) in the second quarter 2024 and included a dividend payment of SEK -159 million, new loans of SEK 1,617 million, and repayment of loans of SEK -1,323 million.
During January– June 2024, cash flow from operating activities was SEK 626 million (1,166). Cash flow from investing activities amounted to SEK -527 million (-449) and included capital expenditure of SEK -528 million (-450) and divestments of SEK 0 million (1). Of the total capital expenditure, SEK -133 million referred to investments to maintain and
improve efficiency in current production facilities and SEK -395 million referred to investments related to the expansion of the production facilities.
During January–June 2024 cash flow before financing activities amounted to SEK 99 million (717). Cash flow from financing activities was SEK 337 million (-632) during the first half-year and includes a dividend payment of SEK -159 million, new loans of SEK 3,843 million and repayment of loans of SEK -3,241 million.
Cash and cash equivalents amounted to SEK 920 million on June 30, 2024 (SEK 461 million on December 31, 2023).
Financial position
Gränges' total assets amounted to SEK 18,538 million on June 30, 2024 (SEK 16,688 million on December 31, 2023). The equity to assets ratio was 50.4 percent on June 30, 2024 (52.8 percent on December 31, 2023).
Financial net debt was SEK 3,031 million on June 30, 2024 (SEK 2,741 million on December 31, 2023), corresponding to 1.3 times adjusted EBITDA (1.1 times on December 31, 2023).
Employees
The average number of employees was 2,769 (2,703) in the second quarter and 2,762 (2,685) for the first half of 2024.
Parent company
Gränges AB is the parent company of the Gränges Group. Its operations include Group Management and Group functions such as finance, treasury, sustainability and communication. For the first half of 2024, net sales in the parent company amounted to SEK 61 million (63). Result for the period January–June was SEK 10 million (288).
Profit for the period Financial net debt to EBITDA
Gränges Americas
- Stabilized market conditions and normalized downstream inventory levels
- Sales volume growth driven by new business
- Increased sales volume, improved metal management and cost productivity offset lower average fabrication price
Gränges Americas experienced stabilized market conditions in most end-customer markets in the second quarter 2024. Sales to HVAC customers increased following a return to a typical seasonal pattern on the back of normalized inventory levels at customers. Sales to Speciality packaging and Other niche customers increased as a result of new business and a normalization of downstream inventory levels. In total, the sales volume in the second quarter increased by 7.1 percent to 60.5 ktonnes (56.5) while net sales decreased to SEK 3,016 million (3,046). The decrease in net sales was primarily driven by a lower average fabrication price.
During the period January–June 2024, total sales volume decreased by 0.1 percent to 116.6 ktonnes (116.7) while total net sales decreased to SEK 5,670 million (6,157).
Adjusted operating profit for the second quarter 2024 increased to SEK 325 million (292). This corresponds to an adjusted operating profit per tonne of 5.4 kSEK (5.2). Increased sales volume as well as improved metal management and cost productivity more than offset a lower average fabrication price. Net changes in foreign exchange rates had no impact compared with the second quarter previous year.
During the period January–June 2024, the adjusted operating profit increased to SEK 592 million (561). By June 30, 2024, the return on capital employed was 19.0 percent (15.4) on a rolling 12-months basis.
| Financial summary | Q2 | Jan– Jun | 12 months rolling |
Full year | ||||
|---|---|---|---|---|---|---|---|---|
| SEK million | 2024 | 2023 | 2024 | 2023 | Jul 2023– Jun 2024 |
2023 | ||
| Sales volume external, ktonnes | 60.5 | 56.5 | 7.1% | 116.6 | 116.7 | -0.1% | 220.5 | 220.6 |
| Sales volume internal, ktonnes | - | - | - | - | - | - | - | - |
| Total sales volume, ktonnes | 60.5 | 56.5 | 7.1% | 116.6 | 116.7 | -0.1% | 220.5 | 220.6 |
| Net sales, external | 3,016 | 3,046 | -1.0% | 5,670 | 6,157 | -7.9% | 10,839 | 11,326 |
| Net sales, internal | - | - | - | - | - | - | - | - |
| Total net sales | 3,016 | 3,046 | -1.0% | 5,670 | 6,157 | -7.9% | 10,839 | 11,326 |
| Adjusted operating profit | 325 | 292 | 11.4% | 592 | 561 | 5.6% | 1,061 | 1,029 |
| Adjusted operating profit per tonne, kSEK | 5.4 | 5.2 | 0.2 | 5.1 | 4.8 | 0.3 | 4.8 | 4.7 |
| Return on capital employed, % | - | - | - | - | - | - | 19.0 | 18.5 |
Gränges Eurasia
- Increased demand from Automotive in Asia
- Normalization of downstream inventory levels in Europe
- Increased sales volume, improved metal management and cost productivity offset lower average fabrication price
Gränges Eurasia experienced a mixed market development in the second quarter 2024. Sales to Other niche customers in Europe increased due to a normalization of downstream inventory levels and new business. Sales to Automotive customers increased on overall level with a continued good growth in Asia whereas Europe experienced a more stable development. Demand for Speciality packaging materials in Europe increased compared to the same quarter last year following normalized inventory levels and stabilized endcustomer demand. In total the sales volume in the second quarter increased by 6.8 percent to 75.0 ktonnes (70.2), while net sales increased by 1.9 percent to SEK 3,371 million (3,307). Lower average fabrication price had a negative impact on net sales compared to the second quarter last year.
During the period January–June 2024, total sales volume increased by 7.4 percent to 146.5 ktonnes (136.4) while total net sales decreased to SEK 6,421 million (6,491).
Adjusted operating profit for the second quarter 2024 decreased to SEK 176 million (199), corresponding to an adjusted operating profit per tonne of 2.3 kSEK (2.8). Increased sales volume as well as improved metal management and cost productivity more than offset a lower average fabrication price. Changes in foreign exchange rates had a net negative impact of SEK 15 million in the second quarter 2024. Adjusted operating profit for the second quarter 2023 included SEK 40 million related to positive timing effects from surcharge clauses in customer contracts. No surcharge clause timing effects occurred in the second quarter 2024.
During the period January–June 2024, the adjusted operating profit decreased to SEK 295 million (370). By June 30, 2024, the return on capital employed was 6.7 percent (6.6) on a rolling 12-months basis.
| Financial summary | Q2 | Jan– Jun | 12 months rolling |
Full year | ||||
|---|---|---|---|---|---|---|---|---|
| SEK million | 2024 | 2023 | 2024 | 2023 | Jul 2023– Jun 2024 |
2023 | ||
| Sales volume external, ktonnes | 70.3 | 63.9 | 10.0% | 136.3 | 124.0 | 10.0% | 255.0 | 242.6 |
| Sales volume internal, ktonnes | 4.6 | 6.2 | -26.2% | 10.2 | 12.5 | -18.2% | 19.4 | 21.7 |
| Total sales volume, ktonnes | 75.0 | 70.2 | 6.8% | 146.5 | 136.4 | 7.4% | 274.4 | 264.3 |
| Net sales, external | 3,128 | 2,962 | 5.6% | 5,903 | 5,819 | 1.4% | 11,276 | 11,192 |
| Net sales, internal | 243 | 345 | -29.6% | 518 | 673 | -23.0% | 988 | 1,142 |
| Total net sales | 3,371 | 3,307 | 1.9% | 6,421 | 6,491 | -1.1% | 12,264 | 12,334 |
| Adjusted operating profit | 176 | 199 | -11.8% | 295 | 370 | -20.3% | 520 | 595 |
| Adjusted operating profit per tonne, kSEK | 2.3 | 2.8 | -0.5 | 2.0 | 2.7 | -0.7 | 1.9 | 2.3 |
| Return on capital employed, % | - | - | - | - | - | - | 6.7 | 7.8 |
Sustainability
- All-time low carbon emissions intensity, meeting 2025 climate goals
- Record-high recycling volume, approaching halfway to 2030 circularity goal
- Gränges named one of Europe's climate leaders 2024
Emissions and climate impact
In the second quarter 2024, Gränges' total carbon emissions intensity (scope 1+2+3) decreased by 15 percent to record-low 7.1 tonnes CO2 e/tonne (8.4). Scope 1+2 intensity increased to 0.69 tonnes CO2 e/tonne (0.64) as a result of lower renewable electricity in Gränges Eurasia and a higher energy consumption overall. Scope 3 intensity decreased significantly by 17 percent to 6.4 tonnes CO2 e/tonne (7.7) as a result of increased recycling and higher share of sourced low-carbon primary aluminium, mainly driven by Gränges Eurasia.
On June 30, 2024, the total carbon emissions intensity was 7.7 tonnes CO2 e/tonne (8.9) on a rolling 12-months basis, a reduction of 33 percent compared to baseline 2017. This means that the 2025 climate goals have been reached, namely reducing scope 1+2 intensity by 25 percent versus 2017, and reducing scope 3 intensity by 30 percent versus 2017.
Recycling and circularity
In the second quarter 2024, Gränges continued the positive recycling and circularity trajectory. The recycling volume increased by 11 ktonnes and reached 63 ktonnes (52) compared to the same quarter previous year. This corresponds to 47 percent recycled aluminium (41) of total sourced metal inputs. The strong performance was a result of continuous efforts on finding new scrap sources, increased recycling capacity and long-term partnerships to secure aluminium scrap, such as Gränges Americas' partnership with Scepter, Inc. for supply of scrap-based aluminium ingots.
On June 30, 2024, the total recycling volume reached a new record level of 232 ktonnes (180) on a rolling 12-months basis, corresponding to 5.0 times the volume in baseline 2017. This means Gränges is approaching halfway to its 2030 goal of 500 ktonnes.
Carbon emissions intensity1 Share of sourced recycled aluminium2
1 Quarterly data may be adjusted in the year-end report when annual emission factors have been confirmed. Scope 2 data is calculated with a market-based approach. Baseline 2017 is recalculated to include the production facility in Konin for carbon emissions intensity data. 2 Baseline 2017 does not include Gränges' production facility in Konin.
SUSTAINABILITY
| Sustainability performance |
Q2 | Jan– Jun | 12 months Full year rolling |
Baseline | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | Jul 2023– Jun 2024 |
2023 | 2017 | |||||
| Total carbon emissions intensity (scope 1+2+3), tonnes CO2 e/tonne1 |
7.1 | 8.4 | -15% | 7.3 | 8.6 | -16% | 7.7 | 8.4 | -9% | 11.4 | -33% |
| Carbon emissions intensity (scope 1+2), tonnes CO2 e/tonne1 |
0.69 | 0.64 | 8% | 0.72 | 0.65 | 11% | 0.69 | 0.66 | 5% | 0.96 | -28% |
| Carbon emissions intensity (scope 3), tonnes CO2 e/tonne1 |
6.4 | 7.7 | -17% | 6.5 | 8.0 | -18% | 7.0 | 7.8 | -10% | 10.5 | -33% |
| Sourced recycled aluminium, ktonnes |
63 | 52 | 21% | 122 | 100 | 22% | 232 | 210 | 11% | 47 | 397% |
| Sourced recycled aluminium, % | 46.6 | 41.1 | 5.5 ppt | 46.0 | 39.3 | 6.7 ppt | 45.0 | 41.6 | 3.4 ppt | 11.5 | 33.6 ppt |
1 Quarterly data may be adjusted in the year-end report when annual emission factors have been confirmed. Scope 2 data is calculated with a market-based approach.
SUSTAINABILITY Gränges named one of Europe's climate leaders 2024
Gränges has been named one of Europe's Climate Leaders by the Financial Times for the second consecutive year. The ranking recognizes companies that achieved the greatest reduction in their core emissions intensity – scope 1 and 2 – in relation to revenue between 2017 and 2022. Companies on this list have also demonstrated a commitment to transparency in scope 3 reporting and further collaborations and commitments toward sustainability, such as CDP and SBTi.
Receiving this recognition from the Financial Times again not only confirms our ambitious sustainability goals but also recognizes the tangible results we have achieved in reducing our climate impact.
Sofia Hedevåg SVP Sustainability
Significant events during the period
Gränges extends its strategic partnership with Shandong Innovation Group to strengthen its competitiveness and support continued electrification growth in Asia. See more on page 6.
Significant events after the period
No significant events have occurred after the period.
The share and owners
The share capital in Gränges amounts to SEK 142 million split on 106,308,618 shares, each with a quota value of SEK 1.339775. Gränges has only one class of shares. The number of known shareholders in Gränges was 12,388 on June 30, 2024, according to Euroclear.
Largest shareholders in Gränges, June 30, 2024¹
| Shareholder | Number of shares |
Share of capital and votes % |
|---|---|---|
| Fjärde AP-fonden | 9,385,590 | 8.8 |
| Swedbank Robur Fonder | 7,253,769 | 6.8 |
| AFA Försäkring | 7,076,947 | 6.7 |
| KGH LTD | 5,520,000 | 5.2 |
| Dimensional Fund Advisors | 4,826,297 | 4.5 |
| Första AP-fonden | 4,700,565 | 4.4 |
| Handelsbanken Fonder | 4,168,047 | 3.9 |
| Vanguard | 3,984,409 | 3.7 |
| Unionen | 2,813,103 | 2.6 |
| Fidelity Investments (FMR) | 2,541,457 | 2.4 |
| Total 10 largest shareholders | 52,270,184 | 49.2 |
| Other | 54,038,434 | 50.8 |
| Total | 106,308,618 | 100.0 |
1 Source: Modular Finance
Annual General Meeting 2024
Gränges AB held its Annual General Meeting (AGM) on May 8, 2024. The General Meeting re-elected Fredrik Arp, Steven Armstrong, Mats Backman, Martina Buchhauser, Peter Carlsson and Gunilla Saltin and elected Mikael Bratt and Cecilia Daun Wennborg as new Board members. The General Meeting re-elected Fredrik Arp as Chair of the Board. The General Meeting resolved, in accordance with the Board of Directors' proposal, on a dividend of SEK 3 per share and that the remaining profits are carried forward. The dividend is to be divided into two payments of SEK 1.50 per payment of which the first was paid out in May 2024 and the second is expected to be paid out in November 2024. The General Meeting also resolved, in accordance with the Board of Directors' proposal, on a long-term incentive program, LTI 2024. The program will run for approximately three years and will be offered to senior managers. Further, the General Meeting resolved, in accordance with the Board of Directors' proposal, to authorize the Board to, on one or more occasions until the next AGM, issue new shares and/or convertible bonds up to a maximum of 10 percent of the total number of shares in the company after utilization of the authorization. An issue can be decided with or without regard to shareholders' pre-emption rights. More information on the resolutions on the AGM and the content in them are available on www.granges.com.
Risks and uncertainties
As a global group with operations in different parts of the world, Gränges is exposed to various risks and uncertainties such as raw material price risk, market risk, operational and legal risk, as well as financial risks related to foreign exchange rates, interest rates, liquidity and refinancing. Gränges' risk management process entails to identify, assess and reduce risks related to the Group's business and operations. More information about risk management is available on pages 56–64 in Gränges' 2023 Annual and Sustainability Report.
Seasonal variations
Gränges' customers are found in the automotive industry, the HVAC industry, the packaging industry, as well as in many other niche markets. Gränges' sales to the automotive industry are highly correlated with the production of light vehicles. Sales to the HVAC industry are impacted by factors such as construction investments, new regulations for energy efficiency and climate impact, and it is usually higher during the summer period driven by a seasonally higher demand for cooling systems. Sales to the packaging and other industries are fairly stable throughout the year. Major annual maintenance work in Gränges' production facilities mainly occurs in the fourth quarter. Overall, the fourth quarter is usually the weakest quarter and the second quarter usually the strongest quarter of the year.
SIGNATURES OF THE BOARD
The Board of Directors and the President and CEO declare that the half-year report gives a true and fair view of the performance of the business, financial position and result of operations of the parent company and the Group, and describes the principal risks and uncertainties that the parent company and its subsidiaries are facing.
Stockholm, July 12, 2024 The Board of Directors of Gränges AB (publ)
| Jörgen Rosengren | |
|---|---|
| Chief Executive Officer | |
| Mats Backman | Mikael Bratt |
| Member of the Board | |
| Cecilia Daun Wennborg | Gunilla Saltin |
| Member of the Board | |
| Tobias Johansson | |
| Employee representative | |
Member of the Board
Gunilla Saltin Member of the Board Martina Buchhauser Member of the Board
This half-year report has not been reviewed by the auditors of the company.
FINANCIAL & SUSTAINABILITY STATEMENTS Financial & sustainability statements
16 GRÄNGES AB (PUBL) HALF-YEAR REPORT 2024
Consolidated income statement (condensed)
| SEK million | Note | Apr – Jun 2024 |
Apr – Jun 2023 |
Jan– Jun 2024 |
Jan–Jun 2023 |
Jan–Dec 2023 |
|---|---|---|---|---|---|---|
| Net sales | 2 | 6,145 | 6,008 | 11,573 | 11,976 | 22,518 |
| Cost of materials | -4,034 | -3,928 | -7,546 | -7,972 | -14,730 | |
| Payroll and other operating expenses | -1,428 | -1,425 | -2,784 | -2,756 | -5,400 | |
| Depreciation, amortization and impairment charges | -211 | -205 | -415 | -397 | -853 | |
| Items affecting comparability | 5 | - | - | - | - | 40 |
| Operating profit | 471 | 450 | 827 | 851 | 1,576 | |
| Profit or loss from associates and joint ventures | 4 | -7 | 1 | -5 | 1 | 1 |
| Finance income and costs | -66 | -85 | -130 | -170 | -316 | |
| Profit before tax | 399 | 366 | 692 | 681 | 1,261 | |
| Income tax | -85 | -50 | -142 | -112 | -252 | |
| Profit for the period | 314 | 316 | 551 | 570 | 1,010 | |
| Profit for the period attributable to | ||||||
| - owners of the parent company | 314 | 316 | 551 | 570 | 1,010 | |
| - non-controlling interests | 0 | 0 | 0 | 0 | 0 | |
| Earnings per share | ||||||
| Earnings per share basic, SEK | 2.95 | 2.97 | 5.18 | 5.36 | 9.50 | |
| Earnings per share diluted, SEK | 2.94 | 2.97 | 5.16 | 5.35 | 9.48 |
Consolidated statement of comprehensive income (condensed)
| SEK million | Apr – Jun 2024 |
Apr – Jun 2023 |
Jan– Jun 2024 |
Jan–Jun 2023 |
Jan–Dec 2023 |
|---|---|---|---|---|---|
| Profit for the period | 314 | 316 | 551 | 570 | 1,010 |
| Items not to be reclassified to profit/loss in subsequent periods | |||||
| Remeasurement of pensions after tax | 8 | 19 | 8 | 19 | -9 |
| Items to be reclassified to profit/loss in subsequent periods | |||||
| Change in hedging reserve after tax | -11 | 71 | -90 | 28 | 1 |
| Translation effects | -77 | 339 | 363 | 340 | -195 |
| Comprehensive income for the period | 234 | 745 | 832 | 956 | 806 |
| Comprehensive income for the period attributable to | |||||
| – owners of the parent company | 234 | 745 | 832 | 956 | 806 |
| – non-controlling interests | 0 | 0 | 0 | 0 | 0 |
Consolidated balance sheet (condensed)
| SEK million | Note | 30 Jun 2024 | 30 Jun 2023 | 31 Dec 2023 |
|---|---|---|---|---|
| ASSETS | ||||
| Intangible assets | 1,507 | 1,592 | 1,474 | |
| Property, plant and equipment | 8,135 | 7,722 | 7,642 | |
| Right-of-use assets | 246 | 255 | 220 | |
| Deferred tax assets | 45 | 44 | 38 | |
| Investments in associates and joint ventures | 4 | 229 | 19 | 226 |
| Interest-bearing receivables | 0 | 6 | - | |
| Other non-current receivables | 3 | 189 | 167 | 208 |
| Non-current assets | 10,352 | 9,806 | 9,808 | |
| Inventories | 3,885 | 3,909 | 3,744 | |
| Receivables | 3 | 3,379 | 3,753 | 2,656 |
| Interest-bearing receivables | 3 | 1 | 0 | 20 |
| Cash and cash equivalents | 920 | 975 | 461 | |
| Current assets | 8,186 | 8,637 | 6,880 | |
| TOTAL ASSETS | 18,538 | 18,443 | 16,688 | |
| EQUITY AND LIABILITIES | ||||
| Equity | 9,347 | 8,903 | 8,809 | |
| Interest-bearing liabilities | 3 | 2,514 | 2,996 | 2,403 |
| Provisions and other non-current liabilities | 3 | 1,018 | 1,024 | 992 |
| Non-current liabilities | 3,532 | 4,020 | 3,395 | |
| Interest-bearing liabilities | 3 | 1,704 | 2,124 | 1,055 |
| Provisions and other current liabilities | 3 | 3,955 | 3,396 | 3,428 |
| Current liabilities | 5,659 | 5,520 | 4,483 | |
| TOTAL EQUITY AND LIABILITIES | 18,538 | 18,443 | 16,688 |
Consolidated changes in equity (condensed)
| SEK million | 30 Jun 2024 | 30 Jun 2023 | 31 Dec 2023 |
|---|---|---|---|
| Opening balance | 8,808 | 8,204 | 8,204 |
| Profit for the period | 551 | 570 | 1,010 |
| Other comprehensive income for the period | 281 | 387 | -203 |
| Total comprehensive income for the period | 832 | 956 | 806 |
| Dividend | -319 | -256 | -266 |
| Share swap | 29 | 6 | 72 |
| Received option/warrant premiums | - | - | 9 |
| Exercise of call options | -3 | - | -18 |
| Total transactions with owners | -294 | -259 | -203 |
| Equity attributable to owners of the parent company | 9,346 | 8,901 | 8,808 |
| Equity attributable to non-controlling interests | 2 | 2 | 2 |
| Closing balance | 9,347 | 8,903 | 8,809 |
Consolidated statement of cash flows (condensed)
| SEK million Note |
Apr – Jun 2024 |
Apr – Jun 2023 |
Jan– Jun 2024 |
Jan–Jun 2023 |
Jan–Dec 2023 |
|---|---|---|---|---|---|
| Operating profit | 471 | 450 | 827 | 851 | 1,576 |
| Depreciation, amortization and impairment charges | 211 | 205 | 415 | 397 | 853 |
| Change in working capital etc. | -47 | 245 | -426 | -2 | 1,036 |
| Income taxes paid | -161 | -70 | -190 | -80 | -173 |
| Cash flow from operating activities | 474 | 830 | 626 | 1,166 | 3,291 |
| Investments in property, plant, equipment and intangible assets | -337 | -198 | -528 | -450 | -1,227 |
| Investments in associates and joint ventures | - | - | - | - | -223 |
| Divestments | 0 | 1 | 0 | 1 | 1 |
| Cash flow from investing activities | -337 | -197 | -527 | -449 | -1,449 |
| Cash flow before financing activities | 138 | 633 | 99 | 717 | 1,842 |
| Dividend | -159 | -266 | -159 | -266 | -266 |
| Share swap | 27 | 6 | 29 | 6 | 72 |
| Received option/warrant premiums | - | - | - | - | 9 |
| Exercise of call options | -3 | - | -3 | - | -18 |
| Interest paid and received | -65 | -85 | -130 | -176 | -316 |
| New loans | 1,617 | 2,145 | 3,843 | 3,976 | 6,723 |
| Repayment of loans | -1,323 | -2,216 | -3,241 | -4,173 | -8,454 |
| Cash flow from financing activities | 93 | -416 | 337 | -632 | -2,250 |
| Cash flow for the period | 231 | 218 | 436 | 85 | -408 |
| Cash and cash equivalents at beginning of period | 695 | 752 | 461 | 879 | 879 |
| Cash flow for the period | 231 | 218 | 436 | 85 | -408 |
| Exchange rate differences in cash and cash equivalents | -5 | 5 | 24 | 10 | -11 |
| Cash and cash equivalents at end of period | 920 | 975 | 920 | 975 | 461 |
Parent company income statement (condensed)
| SEK million | Apr – Jun 2024 |
Apr – Jun 2023 |
Jan– Jun 2024 |
Jan–Jun 2023 |
Jan–Dec 2023 |
|---|---|---|---|---|---|
| Net sales | 31 | 31 | 61 | 63 | 137 |
| Payroll and other operating expenses | -32 | -47 | -89 | -84 | -176 |
| Depreciation, amortization and impairment charges | 0 | 0 | 0 | 0 | 0 |
| Operating profit/loss | -1 | -16 | -28 | -22 | -39 |
| Dividends from subsidiaries | - | 295 | - | 295 | 1,243 |
| Finance income and costs | 13 | 29 | 42 | 26 | 18 |
| Profit/loss after financial items | 13 | 308 | 14 | 299 | 1,222 |
| Income tax | 3 | -16 | -4 | -11 | -40 |
| Profit/loss for the period | 16 | 292 | 10 | 288 | 1,182 |
Parent company balance sheet (condensed)
| SEK million | Note | 30 Jun 2024 | 30 Jun 2023 | 31 Dec 2023 |
|---|---|---|---|---|
| ASSETS | ||||
| Property, plant and equipment | 0 | 0 | 0 | |
| Shares in Group companies | 3,768 | 2,986 | 3,767 | |
| Deferred tax assets | 52 | 40 | 49 | |
| Receivables from Group companies | 1,067 | 1,596 | 1,106 | |
| Other non-current receivables | 175 | 149 | 190 | |
| Non-current assets | 5,061 | 4,777 | 5,112 | |
| Receivables from Group companies | 2,176 | 3,421 | 2,390 | |
| Other receivables | 88 | 217 | 171 | |
| Cash and cash equivalents | 434 | 409 | 19 | |
| Current assets | 2,698 | 4,047 | 2,580 | |
| TOTAL ASSETS | 7,759 | 8,824 | 7,691 | |
| EQUITY AND LIABILITIES | ||||
| Equity | 3,883 | 3,216 | 4,166 | |
| Interest-bearing liabilities | 2,318 | 2,787 | 2,242 | |
| Provisions and other non-current liabilities | 47 | 52 | 46 | |
| Non-current liabilities | 2,365 | 2,839 | 2,288 | |
| Liabilities to Group companies | 362 | 627 | 273 | |
| Interest-bearing liabilities | 850 | 1,920 | 797 | |
| Provisions and other current liabilities | 298 | 222 | 166 | |
| Current liabilities | 1,511 | 2,769 | 1,237 | |
| TOTAL EQUITY AND LIABILITIES | 7,759 | 8,824 | 7,691 |
Notes
Note 1 Accounting principles
The Gränges Group applies International Financial Reporting Standards (IFRS) as endorsed by the EU. The accounting principles adopted are consistent with those described in the Annual Report for Gränges AB (publ) 2023. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The Parent Company applies the Swedish Annual Accounts Act and RFR 2 Reporting for Legal Entities.
New standards, amendments and interpretations effective from January 1, 2024, or later have not had any material impact on this financial report. Gränges is currently evaluating how the, by IASB, issued IFRS 18 Presentation and Disclosures in Financial Statements standard will impact the financial report. The standard will be applicable for reporting periods starting from January 1, 2027, and onwards.
The interim information on pages 2–23 is an integrated part of these financial statements.
Note 2 Revenue from contracts with customers
Gränges' revenue is generated through sale of material that is produced for a certain customer and application. Revenue is recognized at the point in time when control is transferred to the customer. The transaction price for Gränges' products is based on the added value Gränges offers in terms of material properties and production complexity (fabrication price), and the price of the raw material, aluminium. The fabrication price is to a large extent pre-defined while the aluminium price is variable and based on metal price clauses connected to the market price. Other revenue for the full year 2023 includes an insurance compensation of SEK 106 million for a fire in the Konin facility.
The table below show Gränges' net sales by business area divided by type of revenue.
| SEK million | Apr – Jun 2024 |
Apr – Jun 2023 |
Jan– Jun 2024 |
Jan–Jun 2023 |
Jan–Dec 2023 |
|---|---|---|---|---|---|
| Net sales by business area | |||||
| Gränges Americas | |||||
| Fabrication revenue | 1,259 | 1,304 | 2,404 | 2,613 | 4,852 |
| Raw material and other revenue | 1,756 | 1,740 | 3,263 | 3,538 | 6,465 |
| Revenue from contracts with customers | 3,015 | 3,045 | 5,667 | 6,151 | 11,317 |
| Other revenue | 1 | 2 | 3 | 6 | 9 |
| Total net sales Gränges Americas | 3,016 | 3,046 | 5,670 | 6,157 | 11,326 |
| Gränges Eurasia | |||||
| Fabrication revenue | 1,329 | 1,450 | 2,589 | 2,823 | 5,239 |
| Raw material and other revenue | 2,030 | 1,851 | 3,814 | 3,657 | 6,916 |
| Revenue from contracts with customers | 3,359 | 3,301 | 6,403 | 6,480 | 12,156 |
| Other revenue | 12 | 6 | 18 | 11 | 178 |
| Total net sales Gränges Eurasia | 3,371 | 3,307 | 6,421 | 6,491 | 12,334 |
| Other and eliminations | |||||
| Fabrication revenue | -145 | -227 | -315 | -433 | -737 |
| Raw material and other revenue | -98 | -118 | -203 | -239 | -406 |
| Revenue from contracts with customers | -243 | -345 | -518 | -673 | -1,142 |
| Other revenue | - | - | - | - | - |
| Total net sales other and eliminations | -243 | -345 | -518 | -673 | -1,142 |
| Total fabrication revenue | 2,443 | 2,527 | 4,677 | 5,003 | 9,355 |
| Total raw material and other revenue | 3,688 | 3,473 | 6,874 | 6,955 | 12,976 |
| Total revenue from contracts with customers | 6,131 | 6,001 | 11,552 | 11,958 | 22,331 |
| Total other revenue | 14 | 7 | 21 | 18 | 188 |
| Total net sales | 6,145 | 6,008 | 11,573 | 11,976 | 22,518 |
Note 3 Financial instruments
The Group's financial assets consist of lending, accounts receivable, cash and cash equivalents as well as derivatives. The Group's financial liabilities consist of borrowings and accounts payable as well as derivatives. The table below shows the fair value of the derivatives (foreign exchange, aluminium and interest rate derivatives) included in the balance sheet.
| SEK million | 30 Jun 2024 | 30 Jun 2023 | 31 Dec 2023 |
|---|---|---|---|
| Non-current assets | 179 | 160 | 197 |
| Current assets | 104 | 344 | 226 |
| Non-current liabilities | 53 | 67 | 55 |
| Current liabilities | 161 | 277 | 175 |
All derivatives are measured at fair value and are classified according to level 2, i.e., all significant inputs required for measurement of the instruments are observable. Fair value of foreign exchange derivatives is calculated by discounting the difference between the contracted forward rate and the forward rate that can be contracted on the balance sheet date for the remaining contract period. Aluminium derivatives are measured at observable quoted prices on LME (London Metal Exchange) and SHFE (Shanghai Futures Exchange) for similar assets and liabilities. Interest rate derivatives are measured at forward rates from observable interest rate curves and discounting of contractual cash flows.
Gränges' interest-bearing liabilities consist of financing from banks, institutions, and the credit market. As per June 30, 2024, the amount
of outstanding term loans from banks and institutions was USD 120 million and SEK 400 million, whereof USD 120 million and SEK 200 million have a sustainability-linked structure. Financing from banks and institutions also includes a sustainability-linked Revolving Credit Facility of SEK 3,500 million which was unutilized as per June 30, 2024. Financing from the credit market includes a sustainability-linked bond of SEK 600 million, issued under Gränges' MTN program, and commercial papers. As per June 30, 2024, the total volume of outstanding commercial papers was SEK 848 million. Other interest-bearing liabilities includes short-term working capital loans of CNY 500 million.
The loan facilities are subject to covenants, which are Net Debt/EBITDA and Interest coverage ratio.
| Year | |||||
|---|---|---|---|---|---|
| SEK million | Limit/Program | < 1 | 1 –2 | > 2 | Total |
| Term loans | |||||
| SEK | - | 200 | 200 | 400 | |
| USD | - | 1,274 | - | 1,274 | |
| Bonds in MTN program | 3,000 | - | - | 600 | 600 |
| Commercial papers | 2,000 | 848 | - | - | 848 |
| Revolving Credit Facilities | 3,500 | - | - | - | - |
| Lease liabilities | 56 | 44 | 165 | 266 | |
| Other interest-bearing liabilities | 800 | - | 31 | 831 | |
| Total interest-bearing liabilities | 1,704 | 1,518 | 996 | 4,218 |
Interest-bearing liabilities are measured at amortized cost and the carrying amount as of June 30, 2024, was SEK 4,218 million (SEK 3,459 million as of December 31, 2023). The fair value of interest-bearing liabilities amounted to SEK 4,226 million as of June 30, 2024 (SEK 3,469 million as of December 31, 2022). For other receivables and liabilities, which are shortterm, the carrying amount is considered to reflect the fair value.
FINANCIAL & SUSTAINABILITY STATEMENTS
Note 4 Related party transactions
No changes have been made to the Group or parent company in relations or transactions with related parties, compared to what is described in the 2023 Annual Report. During the period there have been no significant transactions with related parties.
Note 5 Items affecting comparability
| SEK million | Financial statement line | Apr –Jun 2024 |
Apr – Jun 2023 |
Jan–Jun 2024 |
Jan–Jun 2023 |
Jan–Dec 2023 |
|---|---|---|---|---|---|---|
| Insurance compensation | Items affecting comparability | - | - | - | - | 40 |
| Items affecting comparability | - | - | - | - | 40 |
There are no items affecting comparability in the second quarter or the first half-year of 2024.
In May 2022, a fire broke out at one of the rolling mills at Gränges' production facility in Konin, Poland. Insurance compensation, with a deductible, was accounted for as part of the adjusted operating result, while compensation beyond the coverage was treated as items affecting comparability. The insurance claim was finally settled during the third quarter of 2023 and resulted in revenue exceeding the cost of the fire by SEK 40 million, which was classified as an item affecting comparability in the period.
Consolidated quarterly data
| 2024 | 2023 | 2022 | ||||||
|---|---|---|---|---|---|---|---|---|
| SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 |
| Sales volume, ktonnes | 130.9 | 122.0 | 107.7 | 114.9 | 120.5 | 120.2 | 110.3 | 119.8 |
| Income statement | ||||||||
| Net sales | 6,145 | 5,428 | 4,967 | 5,575 | 6,008 | 5,968 | 5,366 | 6,172 |
| Adjusted EBITDA¹ | 682 | 560 | 451 | 690 | 655 | 593 | 344 | 583 |
| Adjusted operating profit¹ | 471 | 356 | 245 | 439 | 450 | 401 | 153 | 319 |
| Operating profit | 471 | 356 | 245 | 479 | 450 | 401 | 153 | 243 |
| Profit for the period | 314 | 237 | 108 | 332 | 316 | 254 | 51 | 135 |
| Adjusted EBITDA margin, % | 11.1 | 10.3 | 9.1 | 12.4 | 10.9 | 9.9 | 6.4 | 9.5 |
| Adjusted operating margin, % | 7.7 | 6.6 | 4.9 | 7.9 | 7.5 | 6.7 | 2.8 | 5.2 |
| Adjusted operating profit per tonne, kSEK |
3.6 | 2.9 | 2.3 | 3.8 | 3.7 | 3.3 | 1.4 | 2.7 |
| Operating margin, % | 7.7 | 6.6 | 4.9 | 8.6 | 7.5 | 6.7 | 2.8 | 3.9 |
| Net margin, % | 5.1 | 4.4 | 2.2 | 6.0 | 5.3 | 4.2 | 0.9 | 2.2 |
| Balance sheet | ||||||||
| Non-current assets | 10,352 | 10,274 | 9,808 | 9,626 | 9,806 | 9,290 | 9,249 | 9,233 |
| Current assets | 8,186 | 7,754 | 6,880 | 7,433 | 8,637 | 8,463 | 8,280 | 10,150 |
| Equity | 9,347 | 9,409 | 8,809 | 8,971 | 8,903 | 8,417 | 8,206 | 8,291 |
| Non-current liabilities | 3,532 | 3,535 | 3,395 | 3,915 | 4,020 | 3,824 | 3,783 | 3,865 |
| Current liabilities | 5,659 | 5,083 | 4,483 | 4,172 | 5,520 | 5,511 | 5,541 | 7,227 |
| Cash flow | ||||||||
| Operating activities | 474 | 152 | 925 | 1,199 | 830 | 336 | 919 | 530 |
| Investing activities | -337 | -191 | -774 | -227 | -197 | -252 | -403 | -218 |
| Before financing activities | 138 | -39 | 152 | 972 | 633 | 84 | 516 | 313 |
| Financing activities | 93 | 244 | -307 | -1,310 | -416 | -217 | -837 | -285 |
| Cash flow for the period | 231 | 205 | -155 | -338 | 218 | -133 | -321 | 28 |
| Capital structure | ||||||||
| Net debt | 3,545 | 3,462 | 3,233 | 3,401 | 4,360 | 4,388 | 4,377 | 4,894 |
| Equity to assets, % | 50.4 | 52.2 | 52.8 | 52.6 | 48.3 | 47.4 | 46.8 | 42.8 |
| Data per share, SEK² | ||||||||
| Earnings per share basic | 2.95 | 2.23 | 1.01 | 3.13 | 2.97 | 2.39 | 0.48 | 1.27 |
| Earnings per share diluted | 2.94 | 2.23 | 1.01 | 3.12 | 2.97 | 2.38 | 0.48 | 1.27 |
| Equity | 87.69 | 88.40 | 82.72 | 84.22 | 83.60 | 79.13 | 77.18 | 77.97 |
| Cash flow from operating activities | 4.45 | 1.43 | 8.69 | 11.26 | 7.80 | 3.16 | 8.64 | 4.99 |
| Share price at the end of the period | 136.00 | 115.80 | 116.00 | 103.00 | 102.90 | 98.75 | 85.30 | 71.70 |
| Weighted outstanding ordinary shares, basic in thousands |
106,308.6 | 106,308.6 | 106,308.6 | 106,308.6 | 106,308.6 | 106,308.6 | 106,308.6 | 106,308.6 |
| Weighted outstanding ordinary shares, diluted in thousands |
106,595.9 | 106,445.0 | 106,493.1 | 106,527.0 | 106,499.3 | 106,374.6 | 106,322.6 | 106,345.0 |
1 Adjusted for items affecting comparability, see Note 5 for further information.
2 Calculated on weighted outstanding ordinary shares, diluted.
Consolidated quarterly data
| 2024 | 2023 | 2022 | ||||||
|---|---|---|---|---|---|---|---|---|
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | |
| Sales volume by business area, ktonnes |
||||||||
| Gränges Americas | 60.5 | 56.0 | 46.6 | 57.3 | 56.5 | 60.1 | 57.7 | 63.5 |
| Gränges Eurasia | 75.0 | 71.6 | 65.4 | 62.5 | 70.2 | 66.3 | 58.1 | 62.1 |
| Other and eliminations | -4.6 | -5.6 | -4.3 | -4.9 | -6.2 | -6.2 | -5.5 | -5.8 |
| Total | 130.9 | 122.0 | 107.7 | 114.9 | 120.5 | 120.2 | 110.3 | 119.8 |
| Sales volume by end-customer, ktonnes |
||||||||
| Automotive | 51.8 | 50.7 | 50.0 | 49.3 | 51.9 | 51.4 | 49.1 | 49.8 |
| HVAC | 24.5 | 21.6 | 15.6 | 21.7 | 23.8 | 24.9 | 20.2 | 27.8 |
| Speciality packaging | 21.6 | 22.2 | 19.1 | 20.9 | 19.1 | 20.9 | 22.4 | 21.0 |
| Other niches | 33.0 | 27.5 | 22.9 | 22.9 | 25.7 | 23.0 | 18.6 | 21.2 |
| Total | 130.9 | 122.0 | 107.7 | 114.9 | 120.5 | 120.2 | 110.3 | 119.8 |
| Net sales by business area, SEK million |
||||||||
| Gränges Americas | 3,016 | 2,653 | 2,253 | 2,916 | 3,046 | 3,111 | 2,834 | 3,397 |
| Gränges Eurasia | 3,371 | 3,049 | 2,928 | 2,915 | 3,307 | 3,184 | 2,807 | 3,087 |
| Other and eliminations | -243 | -275 | -214 | -256 | -345 | -327 | -274 | -312 |
| Total | 6,145 | 5,428 | 4,967 | 5,575 | 6,008 | 5,968 | 5,366 | 6,172 |
| Employees | ||||||||
| Average number of employees | 2,769 | 2,755 | 2,769 | 2,735 | 2,703 | 2,667 | 2,682 | 2,697 |
Sustainability¹
| Total carbon emissions intensity (scope 1+2+3), tonnes CO2 e/tonne |
7.1 | 7.4 | 8.5 | 8.0 | 8.4 | 8.9 | 8.9 | 9.7 |
|---|---|---|---|---|---|---|---|---|
| Carbon emissions intensity (scope 1+2), tonnes CO2 e/tonne |
0.69 | 0.75 | 0.65 | 0.67 | 0.64 | 0.66 | 0.82 | 0.80 |
| Carbon emissions intensity (scope 3), tonnes CO2 e/tonne |
6.4 | 6.7 | 7.8 | 7.3 | 7.7 | 8.2 | 8.1 | 8.9 |
| Sourced recycled aluminium, ktonnes |
63 | 59 | 55 | 55 | 52 | 48 | 40 | 40 |
| Sourced recycled aluminium, % | 46.6 | 45.5 | 43.6 | 44.4 | 41.1 | 37.5 | 33.5 | 31.1 |
1 Quarterly data may be adjusted in the year-end report when annual emission factors have been confirmed. Scope 2 data is calculated with a market-based approach.
| Automotive | HVAC | Speciality packaging | Other niches | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Sales volume, ktonnes | Q2 2024 | Q2 2023 | Q2 2024 | Q2 2023 | Q2 2024 | Q2 2023 | Q2 2024 | Q2 2023 | Q2 2024 | Q2 2023 |
| Gränges Americas | 8.1 | 9.8 | 24.5 | 23.8 | 16.9 | 15.0 | 10.9 | 7.9 | 60.5 | 56.5 |
| Gränges Eurasia | 47.9 | 47.8 | 0.3 | 0.5 | 4.7 | 4.1 | 22.0 | 17.8 | 75.0 | 70.2 |
| Other and eliminations | -4.3 | -5.7 | -0.3 | -0.5 | - | - | - | - | -4.6 | -6.2 |
| Total | 51.8 | 51.9 | 24.5 | 23.8 | 21.6 | 19.1 | 33.0 | 25.7 | 130.9 | 120.5 |
Consolidated 12-months rolling data
| 2024 | 2023 | 2022 | ||||||
|---|---|---|---|---|---|---|---|---|
| SEK million | Jul 2023– Jun 2024 |
Apr 2023– Mar 2024 |
Jan 2023– Dec 2023 |
Oct 2022– Sep 2023 |
Jul 2022– Jun 2023 |
Apr 2022– Mar 2023 |
Jan 2022– Dec 2022 |
Oct 2021 – Sep 2022 |
| Sales volume, ktonnes | 475.4 | 465.1 | 463.2 | 465.8 | 470.7 | 472.7 | 479.3 | 481.3 |
| Income statement | ||||||||
| Net sales | 22,115 | 21,978 | 22,518 | 22,917 | 23,513 | 24,380 | 24,492 | 23,984 |
| Adjusted EBITDA¹ | 2,383 | 2,356 | 2,389 | 2,281 | 2,175 | 2,156 | 2,064 | 2,020 |
| Adjusted operating profit¹ | 1,512 | 1,491 | 1,536 | 1,443 | 1,322 | 1,220 | 1,150 | 1,136 |
| Operating profit | 1,552 | 1,531 | 1,576 | 1,483 | 1,246 | 1,206 | 1,136 | 962 |
| Adjusted EBITDA margin, % | 10.8 | 10.7 | 10.6 | 10.0 | 9.3 | 8.8 | 8.4 | 8.4 |
| Adjusted operating margin, % | 6.8 | 6.8 | 6.8 | 6.3 | 5.6 | 5.0 | 4.7 | 4.7 |
| Adjusted operating profit per tonne, kSEK |
3.2 | 3.2 | 3.3 | 3.1 | 2.8 | 2.6 | 2.4 | 2.4 |
| Operating margin, % | 7.0 | 7.0 | 7.0 | 6.5 | 5.3 | 4.9 | 4.6 | 4.0 |
| Capital structure and return indicators |
||||||||
| Capital employed | 12,688 | 12,671 | 12,613 | 12,842 | 12,947 | 12,738 | 12,292 | 11,886 |
| Return on capital employed, % | 11.9 | 11.8 | 12.2 | 11.2 | 10.2 | 9.6 | 9.4 | 9.6 |
| Equity | 9,086 | 8,900 | 8,660 | 8,556 | 8,358 | 8,023 | 7,725 | 7,433 |
| Return on equity, % | 10.9 | 11.2 | 11.7 | 11.1 | 9.0 | 8.9 | 9.1 | 8.4 |
| Financial net debt/Adjusted EBITDA | 1.3 | 1.3 | 1.1 | 1.3 | 1.8 | 1.8 | 1.9 | 2.1 |
1 Adjusted for items affecting comparability, see Note 5 for further information.
Sustainability²
| Total carbon emissions intensity (scope 1+2+3), tonnes CO2 e/tonne |
7.7 | 8.1 | 8.4 | 8.5 | 8.9 | 8.9 | 8.9 | 9.1 |
|---|---|---|---|---|---|---|---|---|
| Carbon emissions intensity (scope 1+2), tonnes CO2 e/tonne |
0.69 | 0.68 | 0.66 | 0.69 | 0.73 | 0.77 | 0.82 | 0.85 |
| Carbon emissions intensity (scope 3), tonnes CO2 e/tonne |
7.0 | 7.4 | 7.8 | 7.8 | 8.2 | 8.1 | 8.1 | 8.3 |
| Sourced recycled aluminium, ktonnes |
232 | 221 | 210 | 195 | 180 | 174 | 169 | 170 |
| Sourced recycled aluminium, % | 45.0 | 43.6 | 41.6 | 39.2 | 35.8 | 34.4 | 32.7 | 32.6 |
2 Consolidated 12-months rolling data may be adjusted in the year-end report when annual emission factors have been confirmed. Scope 2 data is calculated with a market-based approach.
Financials per business area
| Apr – Jun 2024 | Apr –Jun 2023 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK million | Gränges Americas |
Gränges Eurasia |
Other and eliminations |
Total | Gränges Americas |
Gränges Eurasia |
Other and eliminations |
Total | ||
| Sales volume external, ktonnes | 60.5 | 70.3 | - | 130.9 | 56.5 | 63.9 | - | 120.5 | ||
| Sales volume internal, ktonnes | - | 4.6 | -4.6 | 0 | - | 6.2 | -6.2 | 0 | ||
| Total sales volume | 60.5 | 75.0 | -4.6 | 130.9 | 56.5 | 70.2 | -6.2 | 120.5 | ||
| Income statement | ||||||||||
| Net sales, external | 3,016 | 3,128 | - | 6,145 | 3,046 | 2,962 | - | 6,008 | ||
| Net sales, internal | - | 243 | -243 | 0 | - | 345 | -345 | 0 | ||
| Total net sales | 3,016 | 3,371 | -243 | 6,145 | 3,046 | 3,307 | -345 | 6,008 | ||
| Adjusted operating profit¹ | 325 | 176 | -30 | 471 | 292 | 199 | -41 | 450 | ||
| Adjusted operating profit per tonne, kSEK |
5.4 | 2.3 | n/a | 3.6 | 5.2 | 2.8 | n/a | 3.7 | ||
| Capital structure and return indicators |
||||||||||
| Capital employed² | 5,578 | 8,069 | -754 | 12,892 | 5,885 | 8,021 | -643 | 13,263 | ||
| Return on capital employed, %³ | 19.0 | 6.7 | n/a | 11.9 | 15.4 | 6.6 | n/a | 10.2 |
| Jan– Jun 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|
| SEK million | Gränges Americas |
Gränges Eurasia |
Other and eliminations |
Total | Gränges Americas |
Gränges Eurasia |
Other and eliminations |
Total |
| Sales volume external, ktonnes | 116.6 | 136.3 | - | 252.8 | 116.7 | 124.0 | - | 240.6 |
| Sales volume internal, ktonnes | - | 10.2 | -10.2 | 0 | - | 12.5 | -12.5 | 0 |
| Total sales volume | 116.6 | 146.5 | -10.2 | 252.8 | 116.7 | 136.4 | -12.5 | 240.6 |
| Income statement | ||||||||
| Net sales, external | 5,670 | 5,903 | - | 11,573 | 6,157 | 5,819 | - | 11,976 |
| Net sales, internal | - | 518 | -518 | 0 | - | 673 | -673 | 0 |
| Total net sales | 5,670 | 6,421 | -518 | 11,573 | 6,157 | 6,491 | -673 | 11,976 |
| Adjusted operating profit¹ | 592 | 295 | -60 | 827 | 561 | 370 | -80 | 851 |
| Adjusted operating profit per tonne, kSEK |
5.1 | 2.0 | n/a | 3.3 | 4.8 | 2.7 | n/a | 3.5 |
1 Adjusted for items affecting comparability, see Note 5 for further information.
2 Closing balance at end of the period.
3 Calculated on the average capital employed during the past 12-months period.
Financials per business area
| Gränges Americas | 2024 | 2023 | 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | |
| Sales volume external, ktonnes | 60.5 | 56.0 | 46.6 | 57.3 | 56.5 | 60.1 | 57.7 | 63.5 | |
| Sales volume internal, ktonnes | - | - | - | - | - | - | - | - | |
| Total sales volume, ktonnes | 60.5 | 56.0 | 46.6 | 57.3 | 56.5 | 60.1 | 57.7 | 63.5 | |
| Income statement | |||||||||
| Net sales, external | 3,016 | 2,653 | 2,253 | 2,916 | 3,046 | 3,111 | 2,842 | 3,391 | |
| Net sales, internal | - | - | - | - | - | - | -8 | 6 | |
| Total net sales | 3,016 | 2,653 | 2,253 | 2,916 | 3,046 | 3,111 | 2,834 | 3,397 | |
| Adjusted operating profit¹ | 325 | 267 | 166 | 302 | 292 | 269 | 99 | 227 | |
| Adjusted operating profit per tonne, kSEK |
5.4 | 4.8 | 3.6 | 5.3 | 5.2 | 4.5 | 1.7 | 3.6 | |
| Capital structure and return indicators |
|||||||||
| Capital employed² | 5,578 | 5,774 | 5,139 | 5,519 | 5,885 | 5,673 | 5,528 | 6,124 | |
| Return on capital employed, %³ | 19.0 | 18.3 | 18.5 | 16.7 | 15.4 | 15.0 | 15.1 | 15.5 |
| Gränges Eurasia | 2024 | 2023 2022 |
|||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | |
| Sales volume external, ktonnes | 70.3 | 66.0 | 61.1 | 57.6 | 63.9 | 60.0 | 52.6 | 56.3 | |
| Sales volume internal, ktonnes | 4.6 | 5.6 | 4.3 | 4.9 | 6.2 | 6.2 | 5.5 | 5.8 | |
| Total sales volume, ktonnes | 75.0 | 71.6 | 65.4 | 62.5 | 70.2 | 66.3 | 58.1 | 62.1 | |
| Income statement | |||||||||
| Net sales, external | 3,128 | 2,775 | 2,714 | 2,659 | 2,962 | 2,857 | 2,524 | 2,780 | |
| Net sales, internal | 243 | 275 | 214 | 256 | 345 | 327 | 283 | 306 | |
| Total net sales | 3,371 | 3,049 | 2,928 | 2,915 | 3,307 | 3,184 | 2,807 | 3,087 | |
| Adjusted operating profit¹ | 176 | 120 | 103 | 122 | 199 | 171 | 55 | 87 | |
| Adjusted operating profit per tonne, kSEK |
2.3 | 1.7 | 1.6 | 1.9 | 2.8 | 2.6 | 0.9 | 1.4 | |
| Capital structure and return indicators |
|||||||||
| Capital employed² | 8,069 | 7,723 | 7,477 | 7,379 | 8,021 | 7,718 | 7,527 | 7,609 | |
| Return on capital employed, %³ | 6.7 | 7.1 | 7.8 | 7.1 | 6.6 | 6.3 | 6.0 | 6.0 |
1 Adjusted for items affecting comparability, see Note 5 for further information.
2 Closing balance at end of the period.
3 Calculated on the average capital employed during the past 12-months period.
Alternative performance measures
Gränges makes use of the alternative performance measures Return on capital employed, Financial net debt, Equity to assets ratio and Cash conversion. Gränges believes that these performance measures are useful for readers of the financial reports as a complement to other performance measures when assessing the possibility of dividends, the implementation of strategic investments, and the Group's ability to meet
financial commitments. Further, Gränges uses the alternative performance measures Adjusted operating profit, Adjusted operating profit per tonne and Adjusted EBITDA, which are measures that Gränges considers to be relevant for investors who want to understand the profit generation excluding items affecting comparability. For definitions of the measures, see page 31.
| Q2 | Jan–Jun | 12 months rolling |
Full year | |||
|---|---|---|---|---|---|---|
| SEK million | 2024 | 2023 | 2024 | 2023 | Jul 2023 – Jun 2024 |
2023 |
| Adjusted operating profit | ||||||
| Operating profit | 471 | 450 | 827 | 851 | 1,552 | 1,576 |
| Items affecting comparability | - | - | - | - | -40 | -40 |
| Adjusted operating profit | 471 | 450 | 827 | 851 | 1,512 | 1,536 |
| Adjusted operating profit per tonne | ||||||
| Adjusted operating profit | 471 | 450 | 827 | 851 | 1,512 | 1,536 |
| Sales volume, ktonnes | 130.9 | 120.5 | 252.8 | 240.6 | 475.4 | 463.2 |
| Adjusted operating profit per tonne, kSEK | 3.6 | 3.7 | 3.3 | 3.5 | 3.2 | 3.3 |
| Adjusted EBITDA | ||||||
| Adjusted operating profit | 471 | 450 | 827 | 851 | 1,512 | 1,536 |
| Depreciation, amortization and impairment charges | 211 | 205 | 415 | 397 | 871 | 853 |
| Adjusted EBITDA | 682 | 655 | 1,242 | 1,248 | 2,383 | 2,389 |
| Return on capital employed | ||||||
| Total assets less cash and cash equivalents and interest-bearing receivables, rolling 12 months average |
- | - | - | - | 17,002 | 16,735 |
| Non-interest-bearing liabilities, rolling 12 months average | - | - | - | - | -4,556 | -4,355 |
| Pensions, rolling 12 months average | - | - | - | - | 242 | 234 |
| Capital employed | - | - | - | - | 12,688 | 12,613 |
| Adjusted operating profit | - | - | - | - | 1,512 | 1,536 |
| Return on capital employed, % | - | - | - | - | 11.9 | 12.2 |
| Financial net debt/Adjusted EBITDA | ||||||
| Cash and cash equivalents and interest–bearing receivables | - | - | -922 | –981 | -9221 | -480 |
| Interest-bearing liabilities | - | - | 4,218 | 5,120 | 4,2181 | 3,459 |
| Lease liabilities | - | - | -266 | –272 | -2661 | -237 |
| Financial net debt | - | - | 3,031 | 3,867 | 3,0311 | 2,741 |
| Adjusted EBITDA, rolling 12 months | - | - | - | - | 2,383 | 2,389 |
| Financial net debt/Adjusted EBITDA | - | - | - | - | 1.3 | 1.1 |
Continues on the next page…
FINANCIAL & SUSTAINABILITY STATEMENTS
| …continued from previous page. | Q2 | Jan–Jun | 12 months rolling |
Full year | ||
|---|---|---|---|---|---|---|
| SEK million | 2024 | 2023 | 2024 | 2023 | Jul 2023 – Jun 2024 |
2023 |
| Equity to assets | ||||||
| Equity | - | - | 9,347 | 8,903 | 9,3471 | 8,809 |
| Total assets | - | - | 18,538 | 18,443 | 18,5381 | 16,688 |
| Equity to assets, % | - | - | 50.4 | 48.3 | 50.41 | 52.8 |
| Adjusted cash flow before financing activities | ||||||
| Cash flow before financing activities | 138 | 633 | 99 | 717 | 1,223 | 1,842 |
| Cash flow from expansion investments | 262 | 145 | 395 | 348 | 807 | 761 |
| Cash flow from investments in associates and joint ventures | - | - | - | - | 223 | 223 |
| Adjusted cash flow before financing activities | 399 | 779 | 494 | 1,066 | 2,254 | 2,826 |
| Cash conversion | ||||||
| Adjusted cash flow before financing activities | 399 | 779 | 494 | 1,066 | 2,254 | 2,826 |
| Adjusted operating profit | 471 | 450 | 827 | 851 | 1,512 | 1,536 |
| Cash conversion, % | 85 | 173 | 60 | 125 | 149 | 184 |
1 Closing balance at the end of the period.
DEFINITIONS & GLOSSARY
Definitions
Adjusted EBITDA
Adjusted operating profit before depreciation and impairment charges
Adjusted cash flow before financing activities
Cash flow before financing activities excluding cash flow from non-maintenance investments and acquisitions
Adjusted operating profit
Operating profit excluding items affecting comparability
Adjusted operating profit per tonne
Adjusted operating profit divided by sales volume
Average number of employees
The average number of employees converted to full-time positions
Capital employed
Total assets less cash and cash equivalents and interest-bearing receivables, minus noninterest-bearing liabilities, excluding pensions
Carbon emissions scope 1+2
Direct emissions from Gränges' operations and indirect emissions from purchased electricity, heat and steam consumed by Gränges
Carbon emissions scope 3
Emissions from extraction, production and processing of main purchased materials, fuel and energy related activities (not included in scope 1 or scope 2), upstream and downstream goods transportation as well as business travel
Carbon emissions intensity
Total emissions of greenhouse gases [tonnes CO2e] divided by the total packed products [tonnes]
Cash conversion
Adjusted cash flow before financing activities divided by adjusted operating profit
Cash flow before financing activities
Cash flow from operating activities plus cash flow from investing activities
Earnings per share
Profit for the period divided by the total number of shares
Equity to Assets Equity divided by total assets
Financial net debt
Cash and cash equivalents and interest-bearing receivables minus interest-bearing liabilities, excluding lease liabilities
Financial net debt/Adjusted EBITDA
Financial net debt divided by adjusted 12-months rolling EBITDA
Items affecting comparability Non-recurring income and expenses
ktonnes Volume expressed in thousands of metric tonnes
Operating profit Profit before net financial items and tax
Return on capital employed
Adjusted operating profit divided by average capital employed during the past 12-months period
Return on equity
Profit for the period divided by average equity during the past 12-months period
Sales volume Volumes sold in metric tonnes
SEK Swedish Krona
Share of sourced recycled aluminium
Sourced recycled aluminium used as input materials [tonnes] divided by total sourced metal input materials [tonnes]
Glossary
Alloy
Material composed of one metal with additions of other metals and/or elements
Aluminium strip Rolled aluminium in coil form
Brazing Joining of metals through melting and solidification
Cladding
A layer of metal bonded to a dissimilar metal or alloy Heat exchanger A device for transferring heat from one medium to another
HVAC Heating, Ventilation and Air Conditioning systems including heat exchangers
LME London Metal Exchange
Navigate Gränges' strategy for long-term sustainable growth
Rolled aluminium Aluminium that has been hot and/or cold rolled to desired gauge
SHFE Shanghai Futures Exchange
Slab Input material to the rolling process that is produced by casting
Contacts
Sara Lander Hyléen VP Communications & Investor Relations [email protected], +46 709 16 16 41
Lukas Östman Investor Relations Manager [email protected], +46 722 24 39 87
Webcasted presentation
CEO Jörgen Rosengren and CFO Oskar Hellström will present Gränges' half-year report Q2, 2024 at a webcasted conference call on Friday July 12, 2024 at 11.00 CEST. Live webcast: https://granges.videosync.fi/2024-07-12-q2-report Conference call: https://service.flikmedia.se/teleconference/?id=100413
FINANCIAL & SUSTAINABILITY STATEMENTS
Calendar
| Interim report, Q3 | October 24, 2024 |
|---|---|
| Year-end report 2024 | January 30, 2025 |
| Interim report, Q1 | April 25, 2025 |
Important information
This interim report may contain forward-looking statements which are based on the company's best assessment at the time the report was written. As is the case with all assessments of the future, such assumptions are subject to both known and unknown risks and uncertainties, which may mean that the actual outcome differs from the anticipated result.
This information is information that Gränges AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, on Friday July 12, 2024 at 07.30 CEST.
32 GRÄNGES AB (PUBL) HALF-YEAR REPORT 2024
Head office
Gränges AB (publ) Box 5505 SE-114 85 Stockholm Sweden
Visiting address Linnégatan 18 114 47 Stockholm
Sweden
Tel: +46 8 459 59 00 www.granges.com Reg. no. 556001-6122