In the week of 18 – 24 October 2019, ELANA Trading Research team reviewed the latest corporate earnings from September disclosed on the Bulgarian Stock Exchange.

Still decline in M+S Hydraulic‘s reports

Industrial products manufacturer M+S Hydraulic’s (5MH BU) sales dropped 1.4% y/y to 9.2m, yet pre-tax profit surged 25% y/y to 1.7m in Sep’19, according to regular Company monthly filing to the Bulgarian Stock Exchange. As a result, on YTD basis, M+S Hydraulic’s top line shrank 10% y/y to BGN 85.5m, while pre-tax income reached BGN 12.1m, decelerating the decline from previous months to 22.3% y/y. M+S Hydraulic’s management expects sales of BGN 9.3m in Oct’19, which if reached would mark a 16% y/y decline.

Improved profitability for Hydraulic Elements and Systems

Hydraulic Elements and Systems (4HE BU) expanded top line by 7.4% y/y and improved profitability in Sep’19, according to regular filing by the Company. For the Jan-Sep’19 period the Company’s top line arrived to BGN 47.7m, up 4.1% y/y. Increased costs during the period, however, led to earnings before taxes dropping 8% y/y to BGN 4m. For Oct’19, the management forecasts BGN 5.4m in sales (up 1.7% y/y).

Consolidated sales of Stara Planina Hold downwards

Industrial products manufacturer Stara Planina Hold (5SR BU) reported 2.4% y/y drop in consolidated sales in Sep’19 to BGN 17.9m, pushing the YTD top line to BGN 173.4m, down 4.9% y/y, the Company said in a filing. The decline is a result of a 10 % y/y drop in the sales of subsidiaries M+S Hydraulic and Elhim Iskra (52E BU). For Oct’19, the management forecasts Stara Planina’s sales to reach BGN 18.2m, bringing the overall revenues to BGN 191.6m, down 6.3% y/y.

Previous data for Jan-Aug’19 showed consolidated sales have dropped 5.2% y/y to BGN 155.5m. The latter was mainly a result of subsidiary M+S Hydraulic (5MH BU) erasing 11% of sales to BGN 76.3m. The latter’s earnings before taxes dropped 26.7% y/y to BGN 10.5m. During the period, the other big subsidiary Hydraulic Elements and Systems (4HE BU) (HES) expanded its top line by 3.7% y/y to BGN 42.6m, yet its pre-tax profit declined to BGN 3.5m (down 11.4% y/y). Smaller subsidiaries Elhim Iskra (52E BU) and Bulgarian Rose (4BH BU) reported sales of BGN 24.6 (down 6.7% y/y) and BGN 4.6m (up 21.5% y/y), respectively.

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