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PRESS RELEASE Financial results of the SIJ Group in the first half of 2017
Ljubljana, Friday, 29 September 2017 - Release of the initial information about successful and stable operation during the first six months of 2017.
In the first half of 2017 as stated in the consolidated and unaudited results, the operation of the SIJ Group was stable and successful. The SIJ Group generated EUR 512.4 million in sales revenues (an increase of 23,8% compared to the same period last year), which for the first time in history exceeded the limit of half a billion EUR. An operating profit before depreciation and amortization (EBITDA) of EUR 55.9 million is equal if compared to the same period last year. The SIJ Group also maintains high profitability of the business, EBITDA margin at the rate of 10.9% is lower than in the same period of the last year, but still higher than the average in the industry, both in the Metallurgy and the Poultry Division. Investment expenditure of the first half of the year totaled EUR 39 million. The most important among them is installation of the AOD furnace with the price of EUR 30 million at SIJ Acroni. The investment allows to increase the production capacity of stainless steel plates, allowing the SIJ Group to occupy a leading market share in the European Union. The Metallurgy Division generated EUR 389.0 million in sales revenues (an increase of 18.2% compared to the same period last year), mainly due to higher sales prices of products and favourable conditions in the key raw materials markets for steel production. The achieved EBITDA at the rate of EUR 45.5 million was slightly lower than in the same period last year (EUR 47.3 million), but still high, the same as EBITDA margin of 11.7%, exceeding the industry average by one percentage point. Investment expenditure during this period totaled EUR 36.9 million, mainly due to the already launched investment in the AOD furnace at SIJ Acroni, which is the key investment for strengthening the position in the Metallurgy Division as a specialized producer of the steels with high added value. In the Poultry Division (the Perutnina Ptuj Group) sales revenues totaled EUR 123.4 million (an increase of 3,1% compared to the same period last year), the EBITDA achieved was EUR 10.6 million). The achieved EBITDA margin of 8,6% exceeds the industry average in the region (in 2016 it totaled 3.7%), although compared to the last year's first half it is lower by one percentage point. Both the Metallurgy and the Poultry Division of the SIJ Group successfully operate on foreign markets. In the first half of 2017, the SIJ Group has additionally consolidated its export orientation due to generated EUR 417.6 million in foreign markets i.e. 81.5% of all sales revenues. This is by 0.5 percentage points more than in the same period last year. ---
The SIJ Group is the largest vertically integrated Slovenian metallurgist group, and its products rank among the top market positions in the European and world niche steel markets. The Group has two main areas of business – the core business of Metallurgy along with Poultry Division (the Perutnina Ptuj Group) with appr. 7.000 employees in Slovenia and abroad. In 2016 the SIJ Group generated EUR 842.6 million in revenues, an operating profit before depreciation and amortization (EBITDA) of EUR 127 million and a net profit of EUR 51.3 million. The SIJ Group represents its products in more than 80 global markets and is one of the largest Slovenian exporters.
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