Afarak Group (AFAGR) Q4 2024 earnings summary

Executive summary

• Revenue for FY2024 declined 16.3% to EUR 128.6 million compared to FY2023, with EBITDA dropping to EUR 2.6 million from EUR 16.6 million.

• Net loss for FY2024 was EUR -7.2 million, reversing a profit of EUR 10.0 million in FY2023.

• Market conditions were challenging, with weak stainless steel demand in Europe and price pressure from low-cost imports.

• The company maintained a stable financial position, reducing OPEX by 21.2% and keeping low interest-bearing debt.

• Two fatal accidents occurred at South African mines in 2024, prompting safety reviews.

Financial highlights

• H2 2024 revenue was EUR 57.2 million, down from EUR 58.3 million in H2 2023; EBITDA was EUR -1.6 million (H2 2023: EUR 1.5 million).

• FY2024 EBIT was EUR -0.1 million (FY2023: EUR 15.0 million); EBITDA margin fell to 2.0% from 10.8%.

• Cash and cash equivalents at year-end were EUR 4.0 million, down from EUR 18.0 million.

• Operating cash flow for FY2024 was EUR -6.3 million (FY2023: EUR -5.4 million).

• Equity ratio improved to 69.3% (FY2023: 65.1%), with gearing at -1.2%.

Outlook and guidance

• Output of LC FeCr is expected to increase in Q1 2025, with market prices showing signs of bottoming out.

• Chrome ore output is expected to remain stable, and market prices have recently begun to improve.

• A profit warning was issued in February 2025 regarding decreased turnover and EBITDA for FY2024.