Iron Metallurgy: 327% increase in EBITDA – At + 68.5% turnover in 2021

In the context of the significant recovery of economic activity, which occurred in 2021, the SIDMA Metallurgyas it states in its announcement, recorded a “spectacular increase” in turnover and profitability, both at parent and group level.

According to the corporate announcement:

“Specifically, its consolidated turnover SIDMA METALLURGICAL GROUP in 2021 amounted to 226.4 million, from euro 133.3 million in 2020, ie increased by 70.0%, largely reflecting the increase in the average selling price of steel products in 2021 by 64.5% compared to in 2020. Together with dealership sales, it amounted to euro 274.2 million compared to euro 162.8 million last year, an increase of 68.5%. In addition, earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to euro 27.1 million from euro 6.4 million in 2020, recording an increase of 327% mainly due to the increase in turnover and the increase by 50% of gross profit margin. Finally, the results before taxes, after a series of loss-making years, reached the highest levels in the history of the company, reaching euros 31.7 million from euro 0.8 million losses in 2020.

At company level, the turnover of SIDMA Metallurgy in 2021 amounted to euro 150.1 million from euro 93.9 million, showing an increase of 60%, while together with the sales of the agency amounted to euro 197.9 million from euro 123.4 million in 2020, increased by 60.4%. The results before taxes, interest and depreciation (EBITDA) amounted to euro 20.2 million, from euro 5.6 million in 2020 mainly due to the increase in turnover and gross profit margin by 44%, while the results before taxes presented a profit of 26.4 million euros from 0.4 million euros in 2020. 12.4 million euros contributed to the improvement of the results before taxes and the accounting of the refinancing of the company’s loan liabilities, which was completed within the year .

Regarding the Balkan subsidiaries, the SIDMA Bulgaria showed an increase of its turnover by 67% to euro 44.6 million compared to euro 26.7 million, with the average selling price by 64.6% higher than that of 2020, increase of EBITDA to euro 3,505 thousand. from euro 733 thousand in 2020 (increase of 378%), and increase of results before taxes to euro 2,970 thousand in 2021 from euro 130 thousand in the previous year. The improvement of the results is due on the one hand to the increase of the turnover and on the other hand to the improvement of the gross profit percentage by 51% in relation to the previous year.

Or SIDMA Romania It also showed an increase in its turnover by 146%, to euro 32.7 million compared to euro 13.3 million in 2020, with the average selling price higher by 77.8%. The increase in its turnover is due on the one hand to the increase in sales prices but also to the increase in its quantitative sales, as a result of the solution of liquidity problems it faced in previous years, as the restructuring of its lending was completed and in addition it increased its share In this context, its operating profitability (EBITDA) reached 3,475 thousand euros, while in 2020 it was at zero levels, and its pre-tax results had, after several years, a positive sign, after being formed in gains of 2,411 thousand euros from losses of 1,280 thousand euros in the previous year. The increase of the share capital and the profitability formed the Equity of the subsidiary positively, at euro 2,404 thousand, from negative euro 7,807 thousand in 2020.

Finally, it is noted that the combination of the increase in equity, the positive results of the year and the refinancing of the company’s loan liabilities dramatically improved the financial ratios of capital structure and the ability to service the loan, which were formed as 31/ following:

• Net Lending Ratio to Equity = 2.3

• Interest Coverage Ratio (EBITDA / Net Interest) = 6.3.

“The liquidity of the Group amounted at the end of 2021 to euro 12.7 million from euro 16.7 million at the end of 2020, while its net loan liabilities decreased by 26% or 25.5 million euros.”

According to an earlier announcement, the company is not going to distribute a dividend for the year 2021.

Goals and Prospects for 2022

For the last five years the company has been on a growth trajectory, increasing year by year its sales volume, while the completion of the refinancing of its loans and the highest profitability of the previous year have strengthened its capital structure and its liquidity and have significantly increased the possibility of financing the working capital. Thus, the company has full capacity to take advantage of favorable conditions but also enhanced resilience to any turbulence.

These two elements are considered critical in view of the fact that the economic and business horizon is full of opportunities but also threats.

2022 started with positive prospects, with the Greek economy continuing to recover, despite the continuing exogenous inflationary pressures from the middle of last year.

Russia’s invasion of Ukraine, however, sparking a boom in energy, metals and food prices, but also exacerbating global geopolitical instability and uncertainty, puts continued growth in doubt, despite the expected start of disbursements. European Recovery and Resilience Mechanism (RRF) and the new NSRF

Assuming that the general geopolitical situation will not be further aggravated, and its economic consequences will not intensify, SIDMA METALLURGICAL is expected, in 2022, to continue its development course.