Business news

SIJ ups revenue by 24% in first half, back to profit

Ljubljana, 14 September (STA) - The steel group SIJ generated EUR 451.6 million in sales revenue in the first half of the year, or 24.4% more year-on-year, while bouncing from a loss in the first half of 2020 to more than EUR 10 million in net profit.

In the January-June period, the group almost doubled earnings before interest, taxes, depreciation and amortisation (EBITDA) to EUR 43.6 million, the company reported on Tuesday.

The group, which posted a net loss of EUR 26.4 million in the first half of 2020, noted in the release that 85.2% of total revenue was generated in foreign markets. The EBITDA margin was up by 3.4 percentage points to 9.7%.

SIJ increased cast steel production by 16.2% year-on-year, and output of steel products was up by 14.1%, which resulted in additional hiring.

"Demand from individual industrial segments such as car industry, construction, machine manufacture, household appliances, chemical industry and other has started exceeding our production capacity," SIJ said.

The main challenges for the group are high prices of material and sustainability. Investments in the first half of the year amounted to EUR 29.1 million, which is EUR 10 million more than in the same period last year.