Gornji Milanovac-based Metalac Holding (MTLC) released consolidated business results for the first six months, which showed a continued growth trend with reduced margins due to increasing costs.

Consolidated operating revenue in the January-June period reached a record RSD 6.62bn, an increase of 12.8%, primarily due to a 15.7% growth in revenues domestically. Revenues from the foreign market, on account of the war in Ukraine, grew just 4% to RSD 1.63bn.

Consolidated operating profit fell 3.2% to RSD 305.2m, predominantly due to rising material costs for almost a fifth. The consolidated net income weakened 5.6% to RSD 309.3m.

Since the beginning of the year, the company has increased its net debt by 50% to RSD 1.03bn. Regarding inventory, there has been a 32.2% increase this year to an RSD 4bn, off the back of a 40% increase in inventories in trading companies.

Shares of Metalac have fallen 8.6% since the beginning of the year so far and are currently trading at RSD 1,700. The company’s market cap stands at RSD 3.47bn (EUR 29.6m).

Source: Belex, Momentum