Lead acid batteries producer Monbat’s consolidated revenues down 9.7% y/y, bottom line shrank more than 4x in H1 2018, according to latest financial statements published by the Company. During the first six months, Monbat posted BGN 133.6m in revenues, marking a 9.7% y/y decrease, with exports declining by 2.9% y/y to BGN 122.5m. OPEX dropped by 4.2% y/y to BGN 127.7m on lower production, yet this could not compensate for the serious decrease in the top line. The latter led to EBITDA declining to BGN 13m, down 38.7% y/y, and net profit being slashed to BGN 3m, over 4x lower on y/y basis. Accordingly, profitability margins deteriorated with EBITDA margin erasing 462 bps down to 9.7%, and net profit margin declining by 611 bps to 2.2%.
Convertible bond report H1 2018
In addition to its H1 2018 financial statements, Monbat published H1 2018 report on its convertible bond issue. In Jan 2018, the Company placed a EUR 28m convertible bond, the proceeds of which to be used for the implementation of its export expansion. According to the interim report, by end-June 2018, Monbat has spent EUR 5.4m of the proceeds for the acquisition of shares in the parent company of German lithium-ion producer EAS Germany. The major part of the proceeds is yet to be spent on the acquisition of Tunisian peer ASSAD, which is still in negotiations. Information on the deal will be disclosed as early as the end of September 2018.
Dividends in 2018
Monbat shareholders voted BGN 0.19 DPS at the shareholders’ meeting held on 25th June, 2018. The dividend yields 2.3% at current quotes. Last year shareholders received BGN 0.28 dividend per share, which rated at 2.4% yield at the market quotes of the period.