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15 Aug 2025 07:00
AFARAK GROUP: INTERIM REPORT H1 202507:00 London, 09:00 Helsinki, 15 August 2025 - Afarak Group SE ("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR)
FINANCIAL INTERIM RELEASE H1 2025
| H1/25 | H1/ 24 | 2024 | ||
| Revenue | EUR million | 77.1 | 71.4 | 128.6 |
| EBITDA | EUR million | 6.9 | 4.2 | 2.6 |
| EBIT | EUR million | 5.9 | 3.1 | -0.1 |
| Earnings before taxes | EUR million | 3.4 | 1.9 | -5.3 |
| Profit | EUR million | 2.4 | 0.5 | -7.2 |
| Earnings per share | EUR | 0.01 | 0.00 | -0.03 |
| EBITDA margin | 9.0% | 5.9% | 2.0% | |
| EBIT margin | 7.7% | 4.3% | -0.1% | |
| Earnings margin | 4.5% | 2.6% | -4.1% | |
| Personnel (end of period) | 613 | 588 | 602 | |
FIRST HALF 2025 HIGHLIGHTS
Revenue increased by 8% to EUR 77.1 (H1/2024: 71.4) million;Afarak successfully completed the sale of its Ilitha and Zeerust mining assets in South Africa, generating a gain of EUR 2.4 million;Processed material sold increased by 28.8% to 15,354 (H1/2024: 11,922) tonnes;Tonnage mined decreased significantly by 20.5% to 149,410 (H1/2024: 187,958) tonnes;The Group’s EBITDA was EUR 6.9 (H1/2024: 4.2) million and the EBITDA margin was 9% (H1/2024: 5.9%);EBIT was EUR 5.9 (H1/2024: 3.1) million, with the EBIT margin at 7.7% (H1/2024: 4.3%);Profit for the period totalled EUR 2.4 (H1/2024: 0.5) million;Cash flow from operations stood at EUR 0.1 (H1/2024: -5.4) million;The interest-bearing debt amounted to EUR 4.9 (30 June 2024: 4.6) (31 December 2024: 2.6) million;Cash and cash equivalents at 30 June totalled EUR 5.8 (30 June 2024: 10.1) (31 December 2024: 3.9) million.OUTLOOK FOR THE SECOND HALF OF 2025
The market for standard grade low carbon ferro-chrome is expected to be stable throughout the year with some modest upwards potential. The weak US$ could easily wipe out any price increases, and cheap imports especially from Kazakhstan, and in a lesser way from Turkey and India/China will continue to weigh on the market price development. The specialty segment may be seeing more substantial improvements in demand and prices.
The chrome ore business, on the other hand, is expected to produce better margins. We have been finalizing investment decisions that will enable us to swiftly increase the output of chrome ore concentrates in South Africa. A new wash plant is planned to be commissioned by end of September in our Vlaakport mine, together with a solar energy plant which will make us independent from the grid there and allow us to produce on steady and regular basis concentrates with high quality ratios. The Mecklenburg mine is also expected to increase output substantially. By selling Ilitha and Zeerust, our South African team is now able to focus fully on these two assets.
CEO Mr. Guy Konsbruck
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.
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. 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.
Helsinki, August 15, 2025
Afarak Group SE
Board of Directors
For additional information, please contact:
Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@afarak.com
Financial reports and other investor information are available on the Company's website: www.afarak.com.
Afarak Group is a specialist alloy producer focused on delivering sustainable growth with a Speciality Alloys business in southern Europe and a FerroAlloys business in South Africa. The Company is listed on NASDAQ Helsinki (AFAGR) and the Main Market of the London Stock Exchange (AFRK).
Distribution:NASDAQ HelsinkiLondon Stock ExchangeMain mediawww.afarak.com
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Afarak Group Interim release H1 2025 EN
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