Stalprodukt (STP) Q2 2024 earnings summary

Executive summary

• Sales revenue for H1 2024 fell 26.5% year-over-year to PLN 1,871.2 million, with a net loss of PLN 19.4 million versus a profit of PLN 82.4 million in H1 2023. Only the Zinc Segment posted a positive result.

• Electrical Sheets and Profiles segments saw significant declines in sales and profitability due to lower demand, aggressive pricing from Asian competitors, and high production costs.

• The Group maintained operational capacity but signaled potential restructuring if profitability does not improve.

Financial highlights

• Net sales: PLN 1,871.2 million in H1 2024, down from PLN 2,544.9 million in H1 2023.

• Operating loss: PLN 30.1 million in H1 2024, compared to a profit of PLN 134.1 million in H1 2023.

• Net loss: PLN 19.4 million in H1 2024, versus net profit of PLN 82.4 million in H1 2023.

• Net cash flow from operating activities: PLN -11.4 million, down from PLN 249.3 million in H1 2023.

• Total assets: PLN 4,977.5 million as of June 30, 2024.

Outlook and guidance

• Management expects continued pressure from low-cost Asian competitors and high energy costs.

• No significant improvement anticipated in the Profiles Segment due to weak macroeconomic conditions.

• Restructuring may be implemented in Electrical Sheets if profitability does not recover.

• Key risk factors for the next quarter include input prices, demand, LME/metal prices, exchange rates, and energy costs.