Elvalhalcor Hellenic Copper and Aluminium Industry (ELHA) Q3 2024 TU earnings summary

Executive summary

• Sales volume increased by 4.4% year-over-year to 445,000 tonnes, mainly driven by the Aluminium Segment and rigid packaging products, despite subdued demand in most markets.

• Adjusted EBITDA (a-EBITDA) reached €180 million, reflecting strong operational performance, though down 5.1% year-over-year.

• Net debt reduced by €171 million year-over-year to €691 million, supported by robust operating cash flows, reduced investments, and improved working capital.

• Profitability remained resilient amid challenging macroeconomic and market conditions, with profits after tax rising to €90.7 million from €49.8 million year-over-year.

• Dividend of €0.04 per share was paid on July 1, 2024.

Financial highlights

• Turnover for the period was €2.6 billion, with consolidated sales at €2,590.5 million, up 1.4% year-over-year.

• EBITDA stood at €173 million, up from the previous year, while a-EBITDA was €180 million, down 5.1% year-over-year.

• Earnings before taxes reached €91 million, an 82% improvement year-over-year, and profits after tax rose to €90.7 million.

• Net financial cost improved by 15.7% to €34.5 million, reflecting lower net debt and successful working capital management.

• Operating cash flows were strong at €192.8 million, with free cash flow boosted by reduced investments and improved working capital.

Outlook and guidance

• Management maintains a cautious investment approach amid economic and geopolitical uncertainties, with moderate optimism for the future.

• Dividend increase is under consideration, contingent on continued performance.

• No major new investment programs planned; focus remains on operational efficiency and leveraging past investments.

• Strategic focus on innovative, high-value products and global megatrends such as circular economy and climate neutrality.

• Management expects further debt reduction through continued working capital management.