Afarak reports 8% revenue growth, improved profitability in H1 2025

Published 15/08/2025, 07:18
Afarak reports 8% revenue growth, improved profitability in H1 2025

LONDON - Specialty alloys producer Afarak Group SE (LSE:AFRK, NASDAQ: AFAGR) reported revenue of €77.1 million for the first half of 2025, an 8% increase compared to the same period last year, according to a press release statement issued Friday.

The company’s EBITDA rose to €6.9 million, up from €4.2 million in the first half of 2024, with EBITDA margin improving to 9% from 5.9%. Operating profit increased to €5.9 million from €3.1 million a year earlier.

Afarak successfully divested its Ilitha and Zeerust mining assets in South Africa, generating a €2.4 million profit from the sale. The company reported that sales of processed specialty metal alloy materials grew by 28.8% to 15,354 tonnes, while mined tonnage decreased by 20.5% to 149,410 tonnes.

Net profit for the period reached €2.4 million, compared to €0.5 million in the first half of 2024. Cash flow from operations turned positive at €0.1 million, versus negative €5.4 million in the prior-year period.

The company’s interest-bearing debt stood at €4.9 million as of June 30, 2025, with cash reserves of €5.8 million.

For the second half of 2025, Afarak expects the standard low-carbon ferrochrome market to remain stable with some upside potential, though noting that a weak U.S. dollar could offset potential price increases. The company anticipates improved demand and prices in the specialty metal alloys segment and better margins in its chrome ore business.

Afarak is completing investments to rapidly increase chrome ore concentrate production in South Africa, including a new washing plant at its Vlaakpoort mine scheduled to be operational by the end of September, along with a solar power plant to ensure steady production independent of the local power grid.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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