Afarak Group H1 Profit Reaches €2.4 Million

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Afarak Group, listed on the London Stock Exchange under the ticker AFRK, reported a profit of €2.4 million for the first half of 2025, according to its interim financial report. The company reported earnings per share of €0.01, with an EBITDA margin of 9.0%, an EBIT margin of 7.7%, and an earnings margin of 4.5%.

The report, released on Monday, included year-on-year comparisons, showing a decrease from H1 2024, when profit levels were higher due to stronger chrome ore prices and lower production costs. Afarak’s operations, which include Speciality Alloys and FerroAlloys production, continued to generate positive returns. The interim results also reflected a €2.4 million gain from the sale of Ilitha and Zeerust mine assets.

In H1 2024, Afarak had recorded higher margins and earnings, supported by market conditions favourable to chrome ore pricing and more efficient cost structures. While the latest figures confirm a decline in profitability compared with the same period last year, the company remained profitable, demonstrating its capacity to generate returns despite fluctuations in commodity prices.

Afarak operates internationally, with production facilities in South Africa and processing plants in southern Europe. The group has navigated volatile input costs, shifting market demand, and geopolitical factors affecting global supply chains. The results indicate continued operational efficiency and disciplined financial management.

The company’s London listing makes it of particular interest to UK investors tracking commodity-linked stocks. Shares in Afarak have historically been sensitive to changes in chrome and ferroalloy prices, as well as to developments in mining policy in South Africa, which is a key supplier of its raw materials.

Management did not issue forward-looking guidance in the report. Analysts note that maintaining current margins will depend on stable production costs and demand from major steel-producing markets.

Afarak Group is also listed on Nasdaq Helsinki, broadening its investor base. The company’s dual listing and diversified operations are part of its business strategy, helping it balance market risks across multiple regions.

The interim report provides a clear snapshot of Afarak’s mid-year financial performance while outlining the market conditions influencing its operations.