Aurubis continues growth course: Multimetal company raises full-year forecast based on strong half-year result
Hamburg | Thursday, May 11, 2023
- Aurubis generates operating EBT of € 291 million in the first six months of 2022/23
- Key factors: substantially higher treatment and refining charges for concentrates, an increased Aurubis copper premium, high demand for wire rod, and greater income from refining charges for recycling materials
- Full-year forecast increased: operating EBT of between € 450 and 550 million expected
After an extraordinarily successful 2021/22 fiscal year, Aurubis AG (Aurubis) is holding its ambitious course: The multimetal company generated operating earnings before taxes (EBT) of € 291 million in the first half of fiscal year 2022/23 (previous year: € 331 million). In the second quarter that ended on March 31, 2023, operating EBT amounted to € 166 million, on par with the high € 167 million level from the previous year (adjusted).
Aurubis publicized this result according to preliminary figures in an ad hoc release on April 21, 2023 and simultaneously raised the full-year forecast for operating EBT. The multimetal supplier now anticipates an operating EBT between € 450 and 550 million. The previous forecast range was between € 400 and 500 million.
This very strong quarterly result was primarily based on considerably increased treatment and refining charges for concentrates, a significantly higher Aurubis copper premium, very high demand for wire rod at increased prices, and greater earnings from refining charges due to an upturn in the input of recycling materials. These positive effects offset the significant drop in sulfuric acid revenues and a decline in demand for flat rolled products.
“Aurubis continued its positive development with a second quarter on par with the exceptionally good previous year,” Aurubis CEO Roland Harings explains.
High demand for our metal products is clear proof that Aurubis metals are needed more than ever for the mobility and energy transition as well as for digitalization. We have again demonstrated the resilience of our business model, as such a strong half-year result was hardly expected given the geopolitical tensions and recessive tendencies in Europe. In the past six months, we also successfully managed our energy costs through forward-looking hedging activities. Sulfuric acid revenues have also normalized from the exceptionally high previous year.
Revenues in the reporting period amounted to € 8,784 million (previous year: € 9,262 million). Operating ROCE (return on capital employed; determined taking the EBT of the last four quarters into consideration) declined to 15.6 % (previous year: 19.6 %) while earnings performance continued to be very good. Intermittently high inventories to supply the Pirdop site during the upcoming maintenance shutdown of the primary smelter resulted in higher employed capital compared to the previous year’s reporting date. Aurubis now anticipates an operating ROCE between 14 and 18 % (previously: 11–15 %).
At € 19 million, net cash flow was below the prior-year level (€ 54 million) due primarily to high inventories in the first six months of fiscal year 2022/23, though it is already developing positively compared to the first quarter (€ -64 million) despite the ongoing increase in working capital. Net cash flow is subject to fluctuations over the course of the fiscal year, which balance out again as the year goes on.
In the first half of 2022/23, IFRS consolidated earnings* before taxes (EBT) amounted to € 203 million (previous year: € 686 million).
- You can read the complete Interim Report on the First 6 Months 2022/23 here.
- Today from 2 to around 3 pm (CET), the company will offer analysts, investors, and journalists the opportunity to participate in a webcast in English. The access link for listen-only mode (no prior registration required) is available here.
* Because the IFRS result includes measurement effects of metal price fluctuations from unrealized transactions and other factors, Aurubis discloses an operating result (EBT) that differs from the IFRS result. The operating result largely eliminates these effects of metal price fluctuations from unrealized transactions and thus allows for a more realistic assessment of the business performance. Operating EBT is used for control purposes within the Group.
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