Monbat

Leading lead acid batteries producer Monbat (5MB BU) reported 21% y/y rise in earnings before taxes in H1’17 on surge in sales but eroding margins, according to preliminary monthly results published by the Company.

Monbat in H1 2017

Monbat EBT rose 21% y/y in H1’17 to BGN 17m on 34% y/y surge in sales which reached BGN 150.9m. EBITDA rose 18.5% y/y to BGN 25.5m and together with the top line is close to management guidance but above ELANA Trading analysts’ estimates. Yet, June results eroded considerable margins with Jan-June EBITDA margin falling to 16.91% on 17.78% in Q1’17. EBT margin stood at 11.3% in H1’17 vs 12.2% at the end of Q1’17.

In Jan-May’17 top and bottom line rose 27% y/y

In Jan-May 2017 Monbat boked 27% y/y rise in group sales while EBT is up 28% y/y. Group sales advanced above expectations by 26.9% y/y to BGN 121m for the Jan-May 2017 period. EBITDA added 23.2% y/y to BGN 23.2m yielding a 19.11% margin for the five month period, also above ELANA Trading analysts’ expectations. Earnings before taxes advanced 28% y/y to BGN 15.9m yielding a 13.2% margin.

In June shareholders approved BGN 0.28 DPS – 2.4% yield

At Monbat AGM, held June 26th, shareholders approved a BGN 0.28 DPS, yielding 2.4% at current market quotes.

They also approved a special Board of Directors’ derogation to issue BGN 60m convertible bond with the sole aim of acquiring noncurrent assets and shares in companies with the same or similar activity. The bond is expected to be mid-term /5 to 7 years/, according to Chairman and CEO Atanas Bobokov. Bobokov also said that future dividend payout will depend on the bond issuance.

New market

In line with the strategy to tap on a new market in the high-power battery systems solutions, based on safe and proven Lithium Iron Phosphate cell chemistry, in June, Monbat acquired two lithium-ion batteries companies in Germany, according to a regulatory announcement by the Company. See more

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