Viohalco’s consolidated operating profitability (a-EBITDA) in H1 2024 remained high – €273 million compared to €269 million in H1 2023 – reflecting the shift towards higher-margin product categories as well as strict cost control.
Consolidated turnover amounted to €3.3 billion, compared with €3.4 billion in the first half of 2023. According to a related statement, turnover was mainly affected by the sales mix of the various branches, in a continued anaemic demand environment in the European manufacturing and construction sectors.
Consolidated profit before income tax increased due to organic growth in steel cables and pipes, etc.They totaled 112 million euros, against 61 million euros in the first half of 2023, with the metal result being slightly positive, compared to negative in 2023.
THE the net financing requirement increased by 55 million euros and amounted to 1,928 million eurosas a result of the seasonality of working capital, despite its effective management, particularly by the aluminum, steel wire and tube industries, in an environment of disruptions in the supply chain and volatility in metal prices.
“Strong performance and earnings growth despite challenges”
Commenting on the results, CEO Ippokrates Ioannis Stasinopoulos said: “During the first half of 2024, Viohalco companies demonstrated remarkable resilience, adaptability and flexibility and recorded robust performance and earnings growth despite the challenges in their operating environment. The steel pipe and cable industries built on the momentum of 2023, successfully implementing existing projects and secure new contracts. Despite anemic demand conditions, The copper sector saw an increase in profitability, mainly due to the performance of Sofia Med. And the aluminium sector capitalised on its previous investmentsaiming to optimize performance, efficiency and product mix, at the same time the steel industry continued to be affected by subdued demand of the European construction market. End, the growing demand for sustainable and high-quality buildings in Greece has led to a positive performance in the real estate sector.of Viohalco. Looking ahead, I am optimistic about the long-term growth of Viohalco companies by leveraging sustainability improvements and implementing strategic initiatives across its diverse portfolio.”
First-half 2024 operational highlights include:
- Continuous growth in turnover and profitability of Viohalco’s steel pipes and cables divisions, thanks to the search for higher margin projects, the successful implementation of existing projects and the commissioning of new ones.
- The aluminum industry has focused on process optimization and productivity improvements to effectively balance demand across market segments and improve future performance. In addition, great emphasis has been placed on working capital management.
- The copper sector performed strongly despite subdued demand, mainly due to the performance of Sofia Med, a subsidiary of ElvalHalcor. Given the circumstances, volume loss was kept to a minimum, while cost optimization and lower energy prices helped the industry maintain its high profitability.
- The steel sector’s performance was sluggish, due to anaemic demand in the European construction sector, rising interest rates and increased imports from low-cost countries.
- The real estate segment recorded strong operating results with a significant increase in rental income, as a result of active property management, new tenant contracts and increased shopping center turnover.
- Initiatives to adapt product portfolios to current conditions, maximize production capacity utilization and increase operational efficiency across all industrial sectors were maintained.
