Sidma: Emphasis on revenue growth at 9 months, at + 72.1% – Profit jump

An emphatic increase of turnover by 72.1% was recorded by Sidma Metallurgiki on an annual basis in the first nine months of 2021, according to the relevant announcement of the company, while the profits also jump.

More specifically:

-The strong upward trend of the Turnover was maintained, which amounted to euro 55,602 thousand against euro 32,855 thousand in the corresponding period of 2020, recording an increase of 69.2%.

-The high profitability was maintained both in terms of earnings before taxes, interest and depreciation (euro 6,044 thousand against euro 1,674 thousand) and profits before taxes (euro 3,897 thousand against losses of 134 thousand euros).

-The strong cash position and the reduction of net borrowing were maintained (euro 20,073 thousand against euro 16,742 thousand and euro 86,645 thousand against euro 98,409 thousand compared to December 2020 respectively). Regarding the first nine months of the year, the Group’s turnover amounted to euros 162.0 million or 72.1% higher compared to the corresponding period of 2020, while together with the sales of the agency amounted to euros 197.2 million from euro115.4 million increased by 70.9% compared to last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to euro 25,170 thousand from euro 3,515 thousand last year, while the results before taxes amounted to profit 32,184 thousand from losses of euro 1,902 thousand in the corresponding period last year .

The difference in the results before taxes between the two years is due on the one hand to the operating profitability of the first nine months of 2021 and on the other hand to the presentation of the new loan liabilities of the Parent at their fair value, in accordance with IFRS 9 requirements. Group on 31/09/2021, decreased by euro 11.8 million compared to 31/12/2020 while increased by euro 1.6 million compared to 30/06/2021.

Finally, the Group’s Net Position improved by euro 3.7 million compared to 30/06/2021, and amounted to euro 16.4 million. Regarding the uncertainty and risks of Covid-19, its fourth wave pandemic would be likely to affect the short-term growth prospects of the Greek economy, with a negative impact on the Group’s financial figures, however such a development does not currently appear to be included in the key scenarios of the 2 forecasts of financial agents and analysts. In addition, the experience of 2020 shows us that the demand for steel can only be affected under conditions of general lockdown, and the taking of such a measure has been categorically ruled out by the Government.

We estimate that the growth rate of our economy is more likely to slow down due to rising energy costs and the general inflationary pressures exerted on the global economy by the disruption of supply chains due to COVID-19 and the climate crisis. Finally, we point out the expected correction in the gross profit margins as more expensive goods enter our warehouses, increasing the average cost of acquiring inventories. However, none of the above factors seems capable of substantially differentiating by the end of the year the general picture of the fundamental figures of the Group that was formed in the nine months.