15th Aug 2025 11:07
(Alliance News) - Afarak Group SE on Friday reported a jump in profit during the first half of its current financial year despite a decline in tonnage mined, as sales rose.
The Helsinki-based speciality alloys supplier with operations in South Africa, Turkey and Germany said pretax profit was EUR3.4 million in the six months that ended June 30, up 79% from EUR1.9 million the year before.
Revenue advanced 8.0% to EUR77.1 million from EUR71.4 million, while operating expenses also increased 8.0% to EUR74.1 million from EUR68.6 million.
Earnings before interest, tax, depreciation and amortisation improved 64% to EUR6.9 million from EUR4.2 million.
"Afarak managed to present substantially improved Ebitda and profit margins compared to H1/2024 in an extremely competitive and complicated market. The tariff escalation between USA and Europe, the geopolitical uncertainties did not support a positive evolution of the business environment," said Chief Executive Officer Guy Konsbruck.
"Internally, unexpected boulder zones caused set-backs in the mining operations in Mecklenburg, which entailed a low production of Chrome ore. Hence, we could not achieve the expected results in that segment.
"The fact that 80% of our sales happen in the USD currency which has strongly devaluated, added another adverse condition to this picture."
Processed material sold during the six-month period rose 29% to 15,354 tonnes from 11,922 tonnes a year earlier. Tonnage mined, on the other hand, declined 21% to 149,410 tonnes from 187,958 tonnes.
Konsbruck continued: "Under the light of all the above, we can be satisfied with the
results of H1/2025. Afarak has been for many years now the only Western producer of low carbon ferro-chrome, a critical material for production for Aerospace, Defense, Automotive, Green energies, and various other industries."
Looking ahead, Afarak said the market for standard grade low carbon ferro-chrome is expected to be stable throughout the year, with some "modest upwards potential". The specialty segment may be seeing more substantial improvements in demand and prices, the company added.
Its chrome ore business is expected to produce "better margins" in the second half, as Afarak finalises investment decisions that will allow it to "swiftly increase" its output of chrome ore concentrates in South Africa.
Shares in Afarak were up 4.1% at EUR0.30 in Helsinki on Friday afternoon. The stock has risen 12% over the past year.
By Emily Parsons, Alliance News reporter
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