02 February ‘21
MMK Group financial results for Q4 and 12M 2020
MMK Group’s revenue increased by 18.3% quarter-on-quarter (q-o-q) to USD 1,852 mln, which reflects a growth in sales volumes and a rise in steel prices in Russia and globally. EBITDA for Q4 2020 grew to USD 474 mln, up 35.4% q-o-q, driven by higher margins resulting from stronger sales and steel prices trending upwards in key sales markets. EBITDA margin increased by 3.2 p.p. to 25.6%. Net profit more than tripled q-o-q to USD 313 mln, mainly due to higher margins and foreign exchange gains. FCF for the quarter amounted to USD 125 mln, down 62.9% q-o-q, due to higher CAPEX and the seasonal build-up of raw materials amid growing purchase prices.
MMK Group’s revenue declined by 15.5% year-on-year (y-o-y) to USD 6,395 mln due to worsening market conditions and the scheduled reconstruction of Hot-Rolling Mill 2500. EBITDA decreased by 17.0% y-o-y to USD 1,492 mln due to the impact of the pandemic on business activity and global steel prices. EBITDA margin was down by 0.5 p.p. to 23.3%. Net profit declined by 29.4% y-o-y to USD 604 mln, mainly due to worsening market conditions amid the global pandemic. FCF amounted to USD 557 mln, down 36.9% y-o-y, reflecting the worsening global macroeconomic environment.