22 July ‘21
MMK Group financial results for Q2 and H1 2021
MMK Group’s revenue increased by 49.0% quarter-on-quarter (q-o-q) to USD 3,255 mln, which reflects a growth in sales volumes amid higher global steel prices. EBITDA for Q2 2021 almost doubled q-o-q to USD 1,435 mln, reflecting revenue growth fuelled by favourable market developments. EBITDA margin increased by 10.9 p.p. to 44.1%. Net profit was USD 1,031 mln, more than double q-o-q as a result of higher margins on the back of favourable market conditions. FCF for the quarter amounted to USD 545 mln, more than quadrupling on the back of positive dynamics in global markets and last quarter’s low base. At the same time, the growth was partially offset by working capital build-up amid upward movements in global prices for raw materials and metal products throughout the quarter and higher sales volumes.
MMK Group’s revenue increased by 82.7% year-on-year (y-o-y) to USD 5,440 mln, reflecting higher sales due to the completion of Hot-Rolling Mill 2500’s modernisation and an upward trend in market prices for metal products. EBITDA more than tripled y-o-y to $2,161 mln due to revenue growth and last year’s low base. EBITDA margin was up 17.3 p.p. to 39.7%. Net profit increased significantly y-o-y to USD 1,508 mln, mainly reflecting increased business margins amid the recovering global markets. FCF for the quarter increased to USD 670 mln amid positive market developments.