George Mylonas can see the stock of Alumil, which has been operating in its sector for four decades aluminumremain stuck below the psychological threshold of 100 million euros in terms stock market valuation (-8% until 2024), but it is possible that the next period will start to see the game… turn around.
The year 2023 was undoubtedly a bad year, as there was a large drop in profitability (85% drop in net profit and 43% drop in EBITDA, despite the increase in sales volume), due to rapid drop in the price of raw materials, that is, aluminum, which also negatively affected sales prices.
Trend reversal
But that trend appears to have already been reversed, with the Mylonas administration expecting a notable impact size recovery in 2024 (first half results will be released on September 30th).
Aluminum contracts on international commodity markets strengthened by almost +15% this year, at the same time that Alumil’s sales volume continues to grow, which is expected to bring the first smiles to the historic company that started in Kilkis and today he plays… ball in dozens of countries.
And all this, while the Mylonas administration “carries out” a series of investments, with the aim of improving the production process. In fact, it was only in August that the CEO and main shareholder realized Recovery Fund to approve it disbursement of 15 million euros.
All this could lead to a record year in terms of turnover, as in the first quarter there was already a +15% increase in turnover in Greece. is duplicated in relation to the corresponding period of 2023.
The sale of the foundry
In addition to all this, in the coming months Alumil’s management is called upon to take the next steps in this matter as well. foundry industrywhich will initially separate and later will be transferred to a strategic investor.
Through this process, which is estimated to be completed by the end of 2024 – beginning of 2025, George Mylonas intends to finance part of the loan obligations (to 161 million euros the total loan in December 2023). This will allow it to get rid of the presence of servicerswith whom, as you remember, you do not maintain the best relations
All of this, if proven in practice, will most likely help Alumil’s participation. return to 3 euros and why not bring the historic highs from last Augustwhen it rose to 4.1 euros.
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(The text above is the product of journalistic research and does not constitute an invitation to buy, sell or hold any stock)
