Ljubljana, Thursday, 5 April 2018 – The publication of initial report on the unaudited operating results for the Metallurgy and Poultry Divisions in 2017, and a notification on the changes in the SIJ d.d. Management Board
According to initial, unaudited operational results, the SIJ Group’s Metallurgy Division and the Poultry Division – the PP Group together created 1,012.9 million euros, which is a 20.2-percent increase compared to 2016. For the first time, revenues exceeded one billion euros. Both divisions retained their high profitability, since earnings before interest, taxes, depreciation and amortisation (EBITDA) reached triple digits for the second time since 2015, stopping at 103.8 million euros, and the EBITDA margin reached 10.2 percent. Net profit amounted to 17.6 million euros.
Revenues in the Metallurgy Division reached 756.1 million euros (a 19.7-percent increase compared to 2016), EBITDA amounted to 78.7 million euros (a growth of 5.7 percent compared to 2016), and the EBITDA margin reached 10.4 percent. Investments into modernisation and the purchase of new production equipment decreased to 53 million euros, which is in keeping with the development strategy of the SIJ Group until 2020, which plans for a winding down of investment activities after 2016. The increase of production capabilities was rounded off in 2017 by SIJ Acroni for the Metallurgy Division, with its 30-million-euro strategic investment into the AOD converter. The new capabilities form the foundation for an even stronger focus on producing stainless and special steels – the demand for these highly profitable products is growing.
The Poultry Division made 257.1 million euros of revenues in 2017 (a 4.8-percent increase compared to 2016) and 24.4 million euros of EBITDA (a 5.3-percent decrease compared to 2016). The 9.5-percent EBITDA margin is lower by one percentage point compared to 2016, primarily due to increased labour costs.
Both divisions of the SIJ Group made most of their revenues in foreign markets in 2017. Exports totalled 821.5 million euros, amounting to 81.1 percent of total revenues (0.7 percentage points more than in 2016). For the Metallurgy Division, which made 651.4 million euros or 86.2 percent of its revenues (a 0.7 percentage point increase compared to 2016) abroad, countries of the European Union, primarily Germany and Italy, remain the key markets in its export structure. For the Poultry Division, which made 169.9 million euros of revenues, or 66.0 percent (0.5 percentage points more than in 2017) abroad, Ex-Yugoslavian countries are the key markets.
The operations for both divisions of the SIJ Group were marked by favourable external circumstances in 2017, since global economic growth and the economic growth of the Eurozone were getting stronger. Economic conditions in the main steel-consuming sectors in the European Union are linked to the growth of the economic activity, and predictions are also positive for 2018. Steel imports from the East remain the main challenge facing the EU steel market in 2017 and 2018. The improvement of the global economic situation, the strengthening of trade flows, and the increased buying power in Slovenia and countries of the former Yugoslavia were vital in reaching the goals set by the Poultry Division.
Alongside publishing the results of the Metallurgy and Poultry Divisions, the SIJ Group also informs that Dmitrii Bochkarev, Member of the Management Board of SIJ d.d., has resigned, and, as of 30 March 2018, continues his career outside of the SIJ Group. The Supervisory Board shall initiate the proper procedures to complete the Management Board of SIJ d.d. Andrey Zubitskiy continues to head the SIJ Group and SIJ d.d. as the President of the Management Board, together with two Members of the Management Board, Tibor Šimonka and Igor Malevanov.
SIJ – Slovenska industrija jekla, d.d.
mag. Sara Wagner, Head of corporate communications
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