Head Office
32 A Cherni vrah blvd., fl. 4 | 1407 Sofia, Bulgaria
tel. +359 2 962 11 50 | fax: +359 2 962 11 46
e-mail: contact@monbat.com
Five Years Business Plan
Monbat Group aims to increase EBITDA in 5 years horizon reaching 45.524 m EUR from the existing business operations. This envisaged extensive growth will be driven by two concurrent paths, namely:
- Growth of the current business model:
- By focusing on market expansion in term of increase of volumes sold, improved product mix (focus on higher margin battery types) and new export markets in the Battery Division through the utilization of full production capacity of the facilities in Bulgaria and an increase in the client portfolio.
- By reaching maximised capacity and unlocking the potential of optimizations and efficiencies in our battery manufacturing plant in Tunisia over the 5-year horizon by increasing local market share and significant increase in export volumes.
- By focusing on improving and increasing the maximum production of lead and lead alloys from the Group’s recycling plants, by optimizing their technological costs through investments in new energy- and resource-saving production facilities to fully cover the growing production needs for business the battery segment.
- By leveraging the existing sourcing potential of the core scrap batteries markets in Europe to further increase the internal production of lead and lead alloys, thereby bringing additional gross contribution effect.
- By covering the local needs of lead and alloys in Tunisia through the operational process of a newly build modern end-to-end recycling facility.
- Enforcing strategic projects, which drives both the scaling up of the existing business model as well as bringing completely technologies and sources of margin – e.g. scaling carbon nanotube (CNT) production to drive growth in sales to third parties.
2024-2028 Five Years growth pace
| CORE BUSINESS – ORGANIC GROWTH | Measure | 2022 Actual | 2023 Actual | 2024 B | 2025 B | 2026 B | 2027 B | 2028 B |
|---|---|---|---|---|---|---|---|---|
| Volumes | ||||||||
| Batteries sold – Monbat | Pcs | 2,649,040 | 2,747,082 | 3,039,643 | 3,300,061 | 3,514,836 | 3,717,620 | 3,934,876 |
| Batteries sold – Nour | Pcs | 222,000 | 353,941 | 442,045 | 543,733 | 663,395 | 800,441 | 948,546 |
| Batteries sold, pieces – Total Group | Pcs | 2,871,040 | 3,101,023 | 3,481,688 | 3,843,794 | 4,178,231 | 4,518,061 | 4,883,422 |
| Volume Pieces Growth (batteries only) | % | – | -8.0% | 12.3% | 10.4% | 8.7% | 8.1% | 8.1% |
| Lead & Lead Alloys – Intercompany Production | MT | 39,956 | 37,033 | 40,352 | 44,224 | 44,322 | 44,437 | 44,571 |
| Lead & Lead Alloys – Third Party Production | MT | 3,591 | 5,648 | 7,654 | 10,247 | 10,247 | 10,247 | 10,247 |
| Lead & Lead Alloys – High Antimony and Tin Alloys – Third Party Sales | MT | 946 | 1,167 | – | 68 | 68 | 68 | 68 |
| Consolidated Revenue from Continuing Operations | EUR ‘000 | 195,978 | 198,333 | 215,918 | 235,157 | 254,713 | 274,951 | 295,843 |
| Consolidated Gross Profit from Continuing Operations (without depreciation expense) | EUR ‘000 | 41,466 | 44,917 | 50,739 | 58,287 | 65,180 | 71,047 | 76,879 |
| Consolidated Gross Profit from Continuing Operations | % | 21.2% | 22.6% | 23.5% | 24.8% | 25.6% | 25.8% | 26.0% |
| Consolidated EBITDA from Continuing Operations | EUR ‘000 | 17,867 | 20,387 | 24,114 | 30,159 | 36,053 | 40,825 | 45,524 |
| Adjustments for impairment of financial assets | EUR (000) | 246 | – | – | – | – | – | – |
| Consolidated Adjusted EBITDA from Continuing Operations | EUR (000) | 18,113 | 20,387 | 24,114 | 30,159 | 36,053 | 40,825 | 45,524 |
| Consolidated Adjusted EBITDA from Continuing Operations | % | 9.2% | 10.3% | 11.2% | 12.8% | 14.2% | 14.8% | 15.4% |
| Adjusted EBITDA from Continuing Operations – Organic growth rate | % | – | 14% | 18% | 25% | 20% | 13% | 12% |
Performance Drivers
The core business budget is built on the following drivers, namely:
- LME price of Lead is assumed at 1 900 EUR per ton.
- Increasing the volume levels of both batteries sales and lead and lead alloys produced for internal consumption.
- The expected increase in battery sales is supported by the development of several new geographical markets, the acquisition of Nour Group in Tunisia and modest production capacity increase and restoring market position.
- The expected increase of lead and lead alloys produced is in line with the increase of the operational activity of Piombifera Italiana and the newly build end-to-end recycling facility in Tunisia.
- It is envisaged that lead and lead alloys internal consumption will be completely covered by the recycling plant during the period 2024 – 2028 and the surplus of produced quantities will be sold to third parties.