NLMK Group (LSE: NLMK, MOEX: NLMK), a vertically integrated metals company, today released its financial results for Q1 2019 1 .
Key results for Q1 2019. 2019- Group revenue in Q1 2019 decreased by 5% qoq to $ 2.87 billion amid falling average selling prices.
- Revenue increased by 3% YoY due to an increase in sales (+ 11% YoY), which was offset by lower average selling prices.
- EBITDA was $ 695 mn (-18% QoQ; -14% YoY): the decline was due to narrowing price spreads to raw materials amid falling steel prices.
- Free cash flow increased by 35% qoq to $ 678 mn amid the release working capital.
- Net Debt /EBITDA remained low at 0.26x.
VP Finance Commentary Shamil Kurmashov's NLMK Groups:
“In Q1. 2019 saw a multidirectional dynamics of steel consumption in our key markets: In Russia and the United States, demand grew qoq, while in the EU countries there was a slowdown in activity among consumers of rolled steel.
NLMK's revenue decreased by 5% qoq. quarter to $ 2.9 billion due to the correction in steel prices. Compared to the same period last year, revenue growth amounted to 3% YoY, including due to significant sales of slabs for own rolling assets at the beginning of last year. On the home markets of the Group - in Russia, the EU and the USA - in 1Q. In 2019, 56% of metal products were sold.
Sales of finished product inventories amid adjustments in steel prices and the seasonality factor led to an 18% QoQ decrease in EBITDA (-14% YoY). The company managed to significantly increase its free cash flow to $ 678 mn (+ 35% qoq) amid a decrease in finished product inventories in the supply chain and a seasonal decrease in scrap stocks. In addition, in 1 sq. In 2019, the company maintained a low level of investment, which formed a high base for dividend payments for the quarter. Debt load remained at a low level at the end of Q1. 2019: Net Debt /EBITDA was 0.26x. "
- financial_release_nlmk_q1_2019_rus1.02 MB <-! dle_leech_end ->
- <-! dle_leech_begin-- > presentation_nlmk_ifrs_q1_20191.61 MB <-! dle_leech_end ->
- <-! dle_leech_begin -> financial_statements_nlmk_ifrs_3m-2019_usd_rus1.35 MB
- financial_and_operating_data_1q_2019432.1 KB <-! dle_leech_end ->
