Release Date: September 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Elvalhalcor SA (ATH:ELHA, Financial) achieved a 2.5% increase in sales volume to 297,000 tonnes compared to the same period in 2023.
- The company reported a robust adjusted EBITDA of EUR 114 million, demonstrating strong operational performance.
- Net debt was significantly reduced by EUR 145 million year-on-year, improving the net debt to adjusted EBITDA ratio to 3.3.
- The aluminum segment showed improved profitability per tonne from EUR 204 in the first quarter to EUR 207 in the second quarter.
- Elvalhalcor SA (ATH:ELHA) increased its cash position by EUR 60 million, despite challenging market conditions.
Negative Points
- Revenue decreased by 3.8% to EUR 1.7 billion compared to 2023, influenced by sensitive metal prices.
- The company faced adverse conditions in margins across both aluminum and copper segments.
- Interest rates remained elevated, posing challenges to financial performance.
- Geopolitical tensions and market uncertainties continued to impact demand and profitability.
- Despite improvements, the EBIT was lower than in 2023, highlighting ongoing financial pressures.
Q & A Highlights
Q: Could you discuss the key trends in Q3 for each segment: demand, pricing, cost, CapEx? Also, could you provide some color regarding the higher sales leverage mentioned in the press release?
A: We don't typically provide guidance, but Elval is well-positioned to leverage our diversified product portfolio and capitalize on future opportunities. In the aluminum segment, we've completed our investment plan, including a new cold rolling mill and lighting line, which has increased our sales in the beverage market.
Q: How do you expect the rise in energy prices over the summer to affect third-quarter results with the new PPA agreement in place? Do you expect measures from the government or the EU to normalize its market in the Balkans? Is demand in aluminum continuing to improve in the third quarter and expectations of interest rate lowering on both sides of the Atlantic?
A: We have signed a purchase agreement related to renewable energy assets to reduce our exposure to energy price volatility, which helps in reducing costs. While we welcome any government measures to decrease energy costs, we don't expect significant market changes. We continue to focus on producing innovative and high-quality products to meet client needs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
