Aurubis Continues Growth Trajectory, Raises Full-Year Expectations Based on Stellar Half-Year Results

Aurubis Continues Growth Trajectory, Raises Full-Year Expectations Based on Stellar Half-Year Results

(IN BRIEF) Aurubis AG, a multimetal company, is experiencing strong growth as it raises its full-year forecast based on impressive half-year results. The company generated operating earnings before taxes (EBT) of €291 million in the first half of the fiscal year 2022/23. Although revenues slightly declined, the positive effects of increased treatment and refining charges, higher copper premium, strong demand for wire rod, and improved earnings from recycling materials outweighed the decline in sulfuric acid revenues and demand for flat rolled products. As a result, Aurubis has raised its full-year operating EBT forecast to a range of €450 to €550 million. The company’s return on capital employed (ROCE) decreased due to higher inventories but remains strong, and net cash flow is showing positive developments despite fluctuations throughout the fiscal year. Overall, Aurubis continues to demonstrate its growth momentum and solid financial performance.

(PRESS RELEASE) HAMBURG, 11-May-2023 — /EuropaWire/ — Aurubis AG (ETR: NDA), a global supplier of non-ferrous metals and one of the world’s largest copper recyclers, maintains its impressive trajectory after a highly successful fiscal year 2021/22. The company has announced exceptional operating earnings before taxes (EBT) of €291 million for the first half of fiscal year 2022/23 (compared to €331 million in the previous year). Notably, the second quarter, ending on March 31, 2023, saw operating EBT of €166 million, on par with the high €167 million level from the previous year (adjusted).

The preliminary figures, released in an ad hoc statement on April 21, 2023, have led Aurubis to raise its full-year forecast for operating EBT. The multimetal supplier now projects an operating EBT in the range of €450 to €550 million, surpassing the previous forecast range of €400 to €500 million.

The outstanding quarterly performance can be attributed to significant increases in treatment and refining charges for concentrates, a substantial rise in the Aurubis copper premium, robust demand and higher prices for wire rod, as well as increased earnings from refining charges due to greater input of recycling materials. These positive factors successfully offset the decline in sulfuric acid revenues and the decrease in demand for flat rolled products.

“Aurubis continued its positive development with a second quarter on par with the exceptionally good previous year.

“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,” explains Aurubis CEO Roland Harings.

During the reporting period, revenues reached €8,784 million (compared to €9,262 million in the previous year). While the operating return on capital employed (ROCE) decreased to 15.6% (compared to 19.6% in the previous year), Aurubis maintained strong earnings performance. The temporary buildup of inventories to supply the Pirdop site during the upcoming maintenance shutdown of the primary smelter led to higher capital utilization compared to the previous reporting date. Aurubis now expects an operating ROCE between 14% and 18% (previously projected: 11% to 15%).

Net cash flow for the first half of fiscal year 2022/23 was €19 million, lower than the previous year’s figure of €54 million, primarily due to higher inventories. However, it is already showing positive developments compared to the first quarter (€-64 million), despite the ongoing increase in working capital. Net cash flow is subject to fluctuations throughout the fiscal year, which typically balance out as the year progresses.

In the first half of 2022/23, Aurubis recorded IFRS consolidated earnings* before taxes (EBT) of €203 million (compared to €686 million in the previous year).

Additional information:

• 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.

Media contacts:

Angela Seidler
Vice President Investor Relations & Corporate Communications
Phone: +49 40 7883-3178
a.seidler@aurubis.com

Christoph Tesch
Head of Corporate Communications
Phone +49 40 7883-2178
c.tesch@aurubis.com

Meino Hauschildt
Communications Manager
Phone +49 40 7883-3037
me.hauschildt@aurubis.com

SOURCE: Aurubis AG