Aerostar - growing business, declining profit

• The company will distribute dividends of 36.5 million lei

The aeronautical company Aerostar Bacău (ARS) reported business of 168.8 million lei in the first quarter of the year, 9% more than in the first three months of 2024, while net profit amounted to almost 21.1 million lei, 16% less than in the same period last year, according to the issuer's report published on Friday on the website of the Bucharest Stock Exchange (BVB).

Export sales amounted to 146.8 million lei, up 15% compared to those recorded in the period January-March 2024. In contrast, for revenues related to inventories of finished products and production in progress, a negative result of 12.8 million lei was recorded, compared to a gain of 11.2 million lei in the first three months of last year.

Operating expenses amounted to 133.9 million lei, 6% below those in the first quarter of last year, amid a reduction in almost all categories of expenses. The only ones that increased were employee benefit expenses, which amounted to 50.7 million lei, compared to 47.7 million lei in the January-March period of last year. In these conditions, the aeronautical company reported an operating result of 23.1 million lei for the first quarter of the year, 7% below that of the same period of 2024.

Aerostar will distribute, in June, the amount of 36.5 million lei as dividends, from last year's profit of 95.7 million lei, equivalent to a net return of about 2.4% compared to the share price on Friday, in the first part of the stock exchange session.

Aerostar operates in the global market of products and services in the aeronautical and defense industry as an independent company. Aerostar's customers are located in Europe, Asia, Africa, the USA and Canada. In Canada and the United States it supplies aviation products, while in Asia and Africa it provides civil aviation maintenance services. In Europe it provides civil aviation maintenance services, aviation products (landing gear systems, mechanical parts, assemblies and subassemblies), electronic equipment and ground equipment. In Romania, the company provides repair services for military aircraft and repair of electronic parts and components for military aircraft, modernizations, integrations and maintenance for military aviation systems, repair services for systems and launchers and civil aviation products, according to the information presented in the issuer's annual report.

Aerostar Bacău, an issuer whose stock market valuation amounts to about 1.2 billion lei, is 71.5% owned by Iarom Bucharest, while Evergent Investments had 15.2% of the company.