More expensive commodities boosted Metalimex’s business. He doubled the net profit

More expensive commodities boosted Metalimex’s business. He doubled the net profit
More expensive commodities boosted Metalimex’s business. He doubled the net profit

The increase in the sales of Metalimex was influenced by the increase in the prices of all input commodities supplied within the MTX Group, to which Metalimex belongs. However, according to the company, the positive consolidated result was also a consequence of the ongoing expansion of the supplier-customer portfolio despite the turbulent market situation.

“Despite the restrictions caused by the covid-19 pandemic and the conflict in Ukraine, the company maintained a strong position in the market in 2022. The application of a unified business system within a group of connected persons enables the achievement of long-term strategic goals of the entire group to which the company belongs,” said David Bečvář, Deputy Chairman of the Board of Directors of Metalimex.

Revenues from export operations, from the sale of imported goods and from sales outside the territory of the Czech Republic accounted for 71 percent of the company’s total turnover. A third of all the company’s sales were provided by the export of products. Year-on-year, it grew by 37 percent to thirteen billion crowns. The same was true for sales of imported goods, which also accounted for a third of Metalimex’s profit and tripled year-on-year. Over 2.4 billion crowns came from shops outside the Czech Republic. The share of sales from the sale of goods purchased on the domestic market was 29 percent.

“Prices were affected, for example, by the closure of almost half of the primary aluminum production capacity, almost a third in the case of zinc, the growth of premiums due to increased energy prices and the instability of the fuel market affected by the unfavorable situation in Eastern Europe,” said Miroslav Záhorec, deputy chairman of the board of directors.

According to Bečvář, the company plans to develop its market for sales outside the MTX Group this year. At the same time, he will cooperate in other investments within the group. “Metalimex has the ambition to provide a competitive advantage to its partners within the MTX Group and beyond by creating synergistic effects in buying and selling, using unique market knowledge and ensuring commodity and exchange rate risks,” added Bečvář.

Metalimex focuses mainly on the production and sale of metal products for the construction and metallurgical industries. Previously, it was part of the OKD mining group, in 2006 it was bought by the former co-owner of OKD and the father of the current head of Metalimex, Petr Otava. Since then, the company has been part of the MTX Group industrial group. In addition to Metalimex, 16 other companies belong to the group, for example Al Invest Břidličná, Strojmetal Aluminum Forging, OKK Koksovny, Povrly Copper Industries, Tapa Tábor, ICE Industrial Services or Czech Mill. The group focuses mainly on non-ferrous metals, energy commodities, flexible packaging, trading and services. Last year, MTX Group had a record profit before taxation, depreciation and amortization EBITDA of 5.1 billion crowns.

The article is in Czech

Tags: expensive commodities boosted Metalimexs business doubled net profit


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