Alteo HUF 11.3 Billion Net Profit in Q1-Q3 2023

Alteo Group reported a consolidated net profit of HUF 11.3 billion in the first nine months of the year, an increase of 1% compared to the same period last year, the company said on Monday on the website of the Budapest Stock Exchange. 

Consolidated earnings before interest, tax, depreciation and amortization (consolidated EBITDA) reached HUF 16.3 billion, in line with the same period last year even as energy market opportunities gradually decline since the end of 2022, which ended with exceptionally high earnings, the company said.

The company said in a statement this Monday that the performance of its energy retail and renewable generation management businesses, as well as its waste management business, contributed to Alteo's ability to maintain its outstanding results even in the face of falling energy prices.    

In the first three quarters of this year, consolidated net sales increased by 22% year-on-year to HUF 76.85 billion. According to the report, this was mainly due to the fixed electricity and district heating prices in the increased energy market price environment, but also contributed to the consolidation of FE-Group Invest Plc. These compensated for the decline in turnover due to the structure of the retail segment.    

In the statement, Attila Chikán, the company's CEO, stressed that the company's structure, its strategy based on sustainability and renewable energy, its diversified portfolio and its outstanding professional staff have enabled it to take maximum advantage of the opportunities offered by the market.

The experience of the third quarter also shows that the waste management concession, which started on July 1, 2023, offers further significant opportunities for Alteo's waste management segment, which has been significantly strengthened by the acquisition of FE-Group Invest Zrt. in 2022, the CEO said.

According to the statement, the company's management also considers the ramp-up of the renewable generation management business, launched at the end of 2020, as a success story. The segment is currently the clear market leader for managed renewable generation capacity in the domestic market.    

As an example, the CEO cited the Tereske solar power plant, which has an annual production capacity of 31 gigawatt hours (GWh) and is capable of supplying more than 10,000 households, and whose development will start this year. It is expected to be operational in the second half of 2024 and will double Alteo's solar capacity from approximately 20 MW to 40 MW.