Elvalhalcor Hellenic Copper and Aluminium Industry (ELHA) H1 2024 earnings summary

Executive summary

• Sales volumes increased by 2.5% year-over-year to 297,000 tons in H1 2024, despite subdued demand in most markets.

• Adjusted EBITDA (a-EBITDA) reached €114 million, down 13.1% year-over-year, reflecting robust profitability despite lower conversion prices and adverse sales mix.

• Net debt declined by €144.5 million year-over-year to €741 million, supported by strong operating cash flows and reduced investments.

• Revenue for H1 2024 was €1.72 billion, down 3.8% year-over-year, mainly due to lower metal prices and sales mix.

• Net profit attributable to shareholders rose to €46.9 million, up from €25.9 million in H1 2023.

Financial highlights

• Adjusted EBITDA for H1 2024 was €113.8 million, down 13.1% year-over-year, but improved sequentially in Q2 due to product mix optimization.

• EBIT and EBT both higher than 2023; positive metal result of €7 million versus negative €30 million last year.

• Group liquidity ratio at 1.65; leverage ratio improved to 1.25; return on equity increased to 5.51%.

• Interest payments totaled €24 million; taxes and dividends paid were €15 million each.

• Cash position increased by €16 million in H1 2024.

Outlook and guidance

• No formal guidance provided, but focus remains on increasing exports, market share in high-growth products, and further net debt reduction.

• Energy cost volatility mitigated by a new renewable energy purchase agreement.

• Management expects continued focus on product innovation and quality to meet client needs.

• Expectations for demand recovery have not materialized, with subdued demand persisting.

• Stable interest rates in H1 2024 are expected to help mitigate inflationary pressures.