Afarak Group (AFAGR) Q2 2025 earnings summary

Executive summary

• Revenue rose 8% year-over-year to EUR 77.1 million in H1 2025, with EBITDA up to EUR 6.9 million and profit at EUR 2.4 million, reflecting improved margins despite market headwinds.

• Sale of Ilitha and Zeerust mining assets in South Africa generated a gain of EUR 2.4 million, allowing focus on core assets.

• Processed material sales increased 28.8% to 15,354 tonnes, while mined tonnage dropped 20.5% to 149,410 tonnes.

• Cash flow from operations turned positive at EUR 0.1 million, and cash at period end was EUR 5.8 million.

• The business environment remained challenging due to weak US dollar, competitive imports, and geopolitical uncertainties.

Financial highlights

• EBITDA margin improved to 9.0% (from 5.9% in H1 2024); EBIT margin rose to 7.7% (from 4.3%).

• Earnings per share increased to EUR 0.01 (from EUR 0.00 in H1 2024).

• Equity ratio at 68.1%, with gearing at -0.8%.

• Return on equity was 4.5% (up from 1.0%), and return on capital employed reached 16.6%.

• Interest-bearing debt stood at EUR 4.9 million, up from EUR 4.6 million a year earlier.

Outlook and guidance

• Standard grade low carbon ferrochrome market expected to remain stable with modest upside, but weak USD and cheap imports may limit price gains.

• Specialty segment anticipated to see stronger demand and price improvements.

• Chrome ore business expected to deliver better margins; new wash and solar plants at Vlaakport mine to boost output and energy independence.

• Mecklenburg mine output expected to rise; focus now on core South African assets.