Bulgaria's Alcomet swings to non-cons net loss in 2023

The company's total operating revenue dropped to 437.8 million levs in 2023 from 714.9 million levs a year earlier, Alcomet said in a financial statement.

The volume of goods sold went down by over 18% on the year to 58,385 million tonnes (mt), mainly due to a 28% drop in sales of rolled products to 33,043 mt. Goods produced also marked a decline last year, of about 19% to 57,381 mt.

The fall in sales was a result of lower demand and new order volume, as well as high inventory levels, Alcomet said.

However, amidst the stagnant solar and construction industries, the automotive sector remained in good shape, creating opportunities for growth with new projects focused on electric vehicle development, the company said. In 2023, Alcomet enhanced its production capabilities by updating its anodisation line, boosting the production of anodised profiles and facilitating entry into new market segments.

The company also significantly cut its expenses in the review period, to 443.3 million levs from 652.2 million levs the prior year, as costs for materials lost 35% to 360.3 million levs. In addition, costs for hired services shed an annual 30% to 18.4 million levs.

Germany remained Alcomet's biggest market in 2023 with a 20.2% share of all sales, followed by Poland with 16.4% and Italy with 14.4%.

Shumen-based Alcomet makes household, technical and container foils, sheets and strips, as well as standard and customised profiles.

As of 1530 CET on Monday, shares in Alcomet traded 4.90% lower at 6.80 levs on the Bulgarian Stock Exchange.

(1 euro = 1.95583 levs)