Acerinox increases its profits by 177% in the first quarter of the year compared to the same period of 2020

Acerinox ends the first quarter of the year with net profits amounting to EUR 78 million, EBITDA of 161 million (90% higher than the first quarter of 2020) and a turnover of 1,441 million (24% higher than the same period of 2020). The results are due to an improvement in activity from the last months of 2020 onwards, the control and variablisation of costs to swiftly adapt them to demand, and the incorporation of VDM Metals. Acerinox continues to roll out its Sustainability Strategic Plan, Impact 360, focusing on safety, emissions, energy, water, waste and diversity.

In the first quarter of 2021, Acerinox recognised profits after taxes and minority interests totalling EUR 78 million, representing an increase of 177% compared to the first quarter of 2020, a quarter that was hardly affected by the pandemic.

The EBITDA of these three months totalled EUR 161 million, 90% higher compared to that of the first quarter of 2020, while the Group’s turnover grew to EUR 1,441 million, a 24% increase compared to the same period of 2020.

Melting shop production totalled 668,454 tonnes, a 12% increase compared to the first quarter of 2020.

The Group’s net financial debt, EUR 756 million, decreased by EUR 16 million with regard to 31 December 2020 and EUR 98 million with regard to 31 March 2020, when the Acerinox Group purchased VDM Metals.

These results reflect the improvement in activity experienced from the last months of 2020 onwards, with production increases, higher margins and good cash generation, as well as the achievements obtained from the control and variablisation of costs to achieve swift adaptation to demand.

 

Outlook

The good performance of the sectors using stainless steel related to consumer goods, and the inventory situation, make us optimistic for the second quarter of the year. The order backlog is 80% higher than in March 2020 and 40% higher than in March 2019.

The strong order intake in the high performance alloys division suggests a recovery in VDM’s results from June onwards.

Against this backdrop, the Group’s EBITDA in the second quarter will be higher than that in the first quarter.

 

Sustainability

Acerinox continues to work on the lines of action of the Sustainability Strategic Plan, Impact 360º, the main axes of which are:

 

•20% reduction in greenhouse-gas emissions, renewing its commitment to achieving climate neutrality by 2050

•7.5% reduction in energy intensity

•Valorisation of 98% of waste (with just 2% ending up in landfill)

•20% reduction in water withdrawal

•10% annual reduction in the frequency rate of accidents with sick leave

•Increase the percentage of new recruits from minority groups by 10% every year, highlighting the fact that -in 2020 alone- the number of women recruited increased by 19.6%.

 

In the first quarter, the achievement of the 2020 targets linked to green loans with the banks BBVA, Sabadell and Caixabank was confirmed.

CO2 emissions intensity (scope 1+2) decreased by 2% compared to the first quarter of 2020 (-4% compared to the previous quarter).

The accident frequency rate (LTIFR) accumulated in this first quarter gave rise to a 45% decrease compared to the first quarter of 2020 (-62% compared to the previous quarter). Reducing accidents remains a priority for the Acerinox Group, with an annual reduction target of 10%.

Acerinox continues to be a global benchmark in the circular economy, with a recycled content rate of over 90% in its products.

 

General Shareholders’ Meeting

The General Shareholders’ Meeting of the Acerinox Group held on 15 April by electronic means approved the distribution of a dividend of EUR 0.50 per share, which will be paid on 3 June 2021. The total shareholder remuneration to be paid shall amount to EUR 135 million.

The General Shareholders’ Meeting also approved the reappointment of the following directors as members of the Board of Directors:

 

·Mr Tomás Hevia Armengol as Proprietary Director
·Ms Laura González Molero as Independent Director
·Ms Rosa Mª García Piñeiro as Independent Director
·Ms Marta Martínez Alonso as Independent Director