Leading battery producer Monbat (5MB BU) consolidated sales went up 22% q/q in Q3’2015, according to latest consolidated financial results posted by the company.
However, profitability decreased substantially as LME prices kept their significant downward trend over the summer months and recycling was not able to adjust material costs.
Sliding profit margins
Accordingly, Monbat EBITDA margin is down 3.9pp q/q to 13.7% in Q3’2015 while ttm EBITDA margin slid to 16.97% from 18.73% a year earlier.
9M EBITDA stood at BGN 30.1m, up 0.68% y/y.
Overall 9M sales are up 11% y/y to BGN 177.5 m in line with estimates and preliminary announced results. Sales growth was driven mostly by volume growth as season stocking began earlier this year. The company also restarted scrap lead sales from its Romanian and Serbian units, although in smaller quantities.
Monbat – fast-growing in SEE region
Monbat is a vertically integrated holding with three major business lines – production, sale and recycling of lead-acid batteries. The company is Bulgarian-owned and is among the fastest growing battery producers in South East Europe. The export represents 85% of sales and its main markets are Greece, France and Germany.
Monbat was listed on the Bulgarian Stock Exchange in 2006. The IPO was managed by ELANA Trading.