Viohalco announced its consolidated financial results for the first half of 2024, according to which consolidated operating profitability (a-EBITDA) remained high at €273 million and profit before tax amounted to €112 million.

CONSOLIDATED HALF YEAR RESULTS

• Consolidated operating profitability (a-EBITDA) remained at high levels, reflecting the shift to higher margin product categories as well as tight cost control, and amounted to EUR 273 million (H1 2023: EUR 269 million).
• Consolidated net sales for the first half of 2024, which was mainly influenced by the sales mix of the various segments in an environment of continued anaemic demand in the European manufacturing and construction sectors, amounted to EUR 3.3 billion (first half of 2023: EUR 3.4 billion).
• Consolidated profit before income taxes increased due to organic growth in the steel wire and tube segments and amounted to EUR 112 million from EUR 61 million in the first half of 2023, with the metal result slightly positive compared to negative in 2023.
• Net debt increased by EUR 55 million to EUR 1,928 million as a consequence of the seasonality of working capital, despite its efficient management, particularly by the aluminium, cable and steel tubes and pipes businesses, in an environment of supply chain disruptions and metal price volatility.

CEO STATEMENT

Commenting on the results, CEO Ioannis Stasinopoulos said: "During the first half of 2024, ViohalcoBio +1.45% companies demonstrated remarkable resilience, adaptability, and flexibility and recorded robust performance and profit growth despite the challenges of their operating environment. The steel pipe and cable segments capitalised on the momentum of 2023, successfully implementing existing projects and securing new contracts. Despite anaemic demand conditions, the Copper Division recorded an increase in profitability, primarily due to Sofia Med's performance.  Additionally, the aluminum segment made use of its prior investments to improve performance, efficiency, and product mix while the steel segment continued to suffer from weak demand in the European construction market. Finally, growing demand for high-quality, sustainable buildings in Greece led to a positive performance in Viohalco's real estate segment (+.45%). Looking ahead, I am optimistic about the long-term growth of Viohalco companies by leveraging sustainability megatrends and implementing strategic initiatives across their diversified portfolio."

OUTLOOK

The difficult macroeconomic environment and unfavourable market conditions, with elevated interest rates and subdued demand in the main markets, appear to be sustained in the short term. However, strategic initiatives to improve the competitive position, operational efficiency and product mix, as well as investments in attractive new markets, demonstrate that Viohalco companies are well positioned to meet the ongoing challenges and continue to deliver value to stakeholders