Metinvest slashes annual revenue from $10-12 bln to $5-6 bln amid war, remains profitable – CEO
The Metinvest mining and metallurgical group reduced annual revenue from $10-12 billion to $5-6 billion due to a full-scale war, while remaining a profitable company, its CEO Yuriy Ryzhenkov said in an interview with British The Times.
The war has significantly impacted the financial performance of Metinvest, a company that sells a large percentage of its metal products in Ukraine. Metinvest also exports iron ore, flat rolled products, and semi-finished products to 51 countries worldwide, including China, India, and the United States.
According to Ryzhenkov, "before the war, the business usually had annual revenue of $10-$12 billion. Now, this figure is around $5-$6 billion. Despite this, the company remains profitable, and the CEO considers Trump's tariffs to be insignificant."
However, Metinvest's largest enterprises were bombed and put out of operation. This includes the Mariupol metallurgical plants, which were among the first battlefields. Metinvest's revenue has been cut in half, and its personnel have decreased to approximately 50,000. Tens of thousands of people have lost their jobs at the group's enterprises. Currently, 8,000 personnel are serving in the Armed Forces, and 764 have died.
Despite these losses, top management managed to keep the motivation of those who remained in the company. Metinvest is one of the largest private donors to the Ukrainian army, its steel is used for shelters and military equipment.
"Employees feel that they are part of the resistance. And they are proud of it," the CEO noted.
Metinvest is a vertically integrated group of mining and metallurgical enterprises. Its enterprises are located in Ukraine - in Donetsk, Luhansk, Zaporizhia and Dnipropetrovsk regions, as well as in the countries of the European Union, the United Kingdom and the United States. The main shareholders of the holding are the SCM group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the management company of the Metinvest group.