Tough Fourth Quarter Fails To Dim Gränges’ Full Year Financial Results In 2021

Tough Fourth Quarter Fails To Dim Gränges’ Full Year Financial Results In 2021

Swedish rolled aluminium firm Gränges AB reported results for the final quarter and full year of 2021 this week. Though the fourth quarter’s numbers were less than ideal, results for the full year were overall better than 2020’s year-end numbers.

In the fourth quarter, sales volumes totaled 112.3 thousand metric tons, up by 8.7 percent. Adjusted operating profit fell to SEK139 million from SEK193 million, while adjusted operating profit per metric ton of aluminium dropped from SEK1,900 to SEK1,200. Without factoring in the effect of Gränges Konin, the firm’s adjusted operating profit fell from SEK175 million to SEK107 million.

For the full year of 2021, Gränges saw a 39.4 percent rise in sales volume to 488.9 thousand metric tons. Net sales rose on the year as well, from SEK11,008 million in 2020 to SEK18,130 million last year. Adjusted operating profit rose from SEK648 million in 2020 to SEK1,008 million in 2021, while the adjusted operating profit per metric ton of aluminium rose from SEK1,800 to SEK2,100. Profit for the year rose from SEK363 million to SEK595 million, while net debt rose from SEK3,292 million at the end of 2020 to SEK3,643 million as of 31 December last year.

Gränges CEO Jörgen Rosengren said in a related press release that the firm remained on course to meet its financial and sustainability targets.

“In 2021, we made good progress against our ambitious sustainability targets. Highlights include reducing our total carbon emissions, increasing our volumes of sourced recycled aluminium, emitting our first Sustainability-Linked Bond, and having more products with third-party verified sustainability information.”

“I’m also very proud that Gränges in the fourth quarter achieved a Platinum rating from the independent sustainability rating company EcoVadis, which placed us among the leading 1 per cent in our industry,” he continued. “During the fourth quarter, Gränges Finspång achieved Gränges’ first certification against the Aluminium Stewardship Initiative (ASI) Chain of Custody Standard, followed by Gränges Shanghai in the beginning of 2022. This means that we can now offer customers verified sustainability credentials demonstrating that our products are responsibly sourced and produced.”

Begun in 1873 in Stockholm, Sweden as Trafik AB Grängesberg-Oxelösund, Gränges AB was resurrected in 2013 as a private company specializing in rolled aluminium heat exchangers. It employs almost 1,800 employees at the present time at two plants – one in Finspång, Sweden, that opened in its present configuration in 1972, and a second in Shanghai, China, opened in 1996. The firm boasts a total nameplate capacity of 420 thousand metric tons per annum and an annual sales total of SEK13 billion (US$1.35 billion).