Bulgaria capitals

Bulgarian Monbat H1 net profit not contraindicated drops 34% YoY due to lower sales

SOFIA (Bulgaria), August 9 (SeeNews) – Bulgarian car battery manufacturer Monbat [BUL:MONB] said its standalone net profit fell to 5.3 million levs ($2.8 million/€2.7 million) in the first six months of 2022, from just over 8 million levs a year earlier due to a drop in sales.

Monbat’s overall revenue was 163 million levs in the first half of 2022, down from 171.3 million levs in January-June 2021, the company said in an interim financial statement.

Turnover fell to 156.6 million levs in the January-June period from 169.2 million levs a year earlier.

Exports accounted for 86.8% of the company’s total turnover during the reporting period, with France becoming Monbat’s largest market in the first half of the year, contributing 6.1 million euros ($6.2 million), or 8.75% of Monbat’s total export turnover.

Germany, Spain, Saudi Arabia and the Netherlands complete the list of the Bulgarian company’s top five export markets, out of the 77 countries where it sells its production. Sales to Russia halved year-on-year to 3.18% of total exports in the first half of 2022, while those to Ukraine and Belarus fell to 0.66% of the total from 1 % one year earlier.

The domestic market accounted for 13.2% of total first-half turnover, or some 20.7 million levs.

Monbat’s operating expenses decreased to 154.5 million levs during the reporting period, from 159 million levs in the first half of 2021, due to higher expenses for materials. Lead, which is the battery maker’s main raw material, accounted for 65% of each unit’s spending this year, the company said.

In June, Monbat and US Advanced Battery Concepts LLC (ABC) agreed to commercially develop bipolar lead-acid batteries for large-scale industrial use, which will be manufactured at a planned 1 gigawatt plant in Bulgaria, for an investment of project estimated at 16 million euros. .

Later the same month, a senior management vehicle from Monbat acquired the combined stakes in the European Bank for Reconstruction and Development (EBRD) company and private equity firm CEECAT Capital.

Shares of Monbat traded up 2.88% at 5.35 levs on the Bulgarian Stock Exchange at 2:22 p.m. CEST on Tuesday.

(1 euro = 1.95583 levs)