Atanas Bobokov, Monbat CEO

The lead acid batteries producer Monbat (5MB BU) reported 29.4% y/y rise in revenues and 7.8% y/y rise in net income in Q1 2016, according to the company’s individual Q1 2016 financial reports.

Monbat growth continues

Key revenue growth driver were both organic growth in the batteries business, 10% y/y rise in segment sales to BGN62.5m, as well as sales to subsidiaries, 102% y/y rise to BGN 28.9m, mostly to Monbat’s recycling subsidiary in Bulgaria – Monbat Recycling.
The latter may be part of the Group’s efficiency measures, including better sourcing of lead scrap to recycling facilities. Almost 100% of Monbat’s lead and propylene materials are own produced.

Improving profitability

Accordingly, profitability improved both on an individual and consolidated basis in Q1 2016. Unconsolidated EBITDA is up 11.3% y/y to BGN 8.5m or 9.3% EBITDA margin while net income added 7.8% to BGN 6.5m or 7% net income margin. Overall individual sales stood at BGN 92.2m. Earlier in April, Monbat announced preliminary consolidated financial results. Group sales in Q1 2016 were up 0.91% y/y to BGN 63.9m which reveals tiny recycling contribution to the top line of the Group. However, recycling added considerably to the Group’s bottom line with consolidated EBITDA at BGN 12.4m, or 19.36% EBITDA margin and income before taxes at BGN 8.7m or 13.65% income before taxes margin.

About Monbat

Monbat AD is the largest lead-acid battery producer in Bulgaria, with more than 60-year history and traditions in lead acid batteries manufacturing. The Group is among the fastest growing battery producers in South East Europe successfully rivaling Romanian and Turkey peers, Rombat and Mutlu, respectively.
The Company manufactures and distributes lead-acid batteries for civil (automotive, telecom, industrial, marine, sports & leisure sectors) and military application. It is fully vertically integrated with two production sites in Bulgaria and three scrap batteries recycling facilities in Bulgaria, Romania and Serbia. It also invests in growth businesses such as LED lighting bulbs.

Check Monbat corporate profile prepared by ELANA Trading analysts