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Afarak Group Warns of Significant Decline in 2024 Financial Results

Story Highlights
  • Afarak Group expects an 85% decrease in EBITDA and 16.3% decline in turnover for 2024.
  • Despite challenges, Afarak sees positive signs in the chrome ore market and aims to improve production in South Africa.
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Afarak Group Warns of Significant Decline in 2024 Financial Results

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Afarak Group Plc ( (GB:AFRK) ) has issued an announcement.

Afarak Group SE has issued a profit warning indicating a significant 85% decrease in EBITDA to approximately 2.6 million euros and a 16.3% decline in turnover for the full year 2024. The company attributes these declines to challenges in the stainless steel industry, notably low demand in Germany and Europe, and the impact of Russian material imports affecting margins. Despite these difficulties, the company is seeing positive signs in the chrome ore market and is working on enhancing production capabilities in South Africa. Additionally, there is optimism for improved demand in aeronautics and defense sectors, along with better cost structures and new revenue streams in Europe.

More about Afarak Group Plc

Afarak Group is a specialist alloy producer focused on sustainable growth with its Speciality Alloys business in Southern Europe and FerroAlloys business in South Africa. The company is publicly listed on NASDAQ Helsinki and the London Stock Exchange.

Technical Sentiment Consensus Rating: Buy

Current Market Cap: £79.48M

Find detailed analytics on AFRK stock on TipRanks’ Stock Analysis page.

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