Another consecutive month for Monbat Group with increase in EBITDA compared to October 2019

In October, 2020 the companies in the economic group of Monbat AD have generated consolidated net sales revenues to the amount of BGN 33 183 thousand which represents a decrease of 9.60% compared to the consolidated net sales revenues from continuing operations generated in October, 2019.

The consolidated data for the first ten months of  2020 shows that the companies in the economic group of Monbat AD have generated consolidated net sales revenues to the amount of BGN 251 358 thousand which represents a decrease by 6.20% compared to the consolidated net sales revenues from continuing operations for the same period of 2019.

The generated net sales revenues from continuing operations for the first ten months of 2020 in the amount of BGN 251 358 thousand are allocated as follows:

The generated consolidated result before taxes of the companies in the economic group of Monbat AD for October, 2020 is a profit of BGN 1 958 thousand, which represents a decrease by 1.50% compared to the consolidated result before taxes from continuing operations for the same period of 2019.

The consolidated data for the first ten months of  2020 shows that the companies in the economic group of Monbat AD have generated profit before taxes to the amount of BGN 12 038 thousand, which represents a decrease by 12.40% compared to the generated consolidated profit before taxes from continuing operations for same period of 2019.

The consolidated EBITDA of the Group for October 2020 stands at BGN 3 912 thousand which represents an increase by 6.00% to the consolidated EBITDA from continuing operations for October 2019.

The consolidated data for the first ten months of 2020 show that the companies in the economic group of Monbat AD have generated EBITDA to the amount of BGN 31 676 thousand which represents an increase of 3.10% compared to same period of 2019.

Notes:

1) Other revenues recognized in the comparable period January-October 2019 are adjusted with BGN 6,126 thousand. The value of the adjustment relates to recorded revenues in connection with fixed assets sold on sale and lease back arrangement, for which after review it has been concluded that the criteria stipulated in IFRS 15 for revenue recognition and respectively write-off of the carrying amount of the sale have not been met.

2) The revenues from sales of production in the comparable period January-October 2019 were adjusted by BGN 450 thousand. The adjustment represents a pro-rata accrual with respect to expected value of annual bonuses for volume discounts related to batteries sold to certain distributors.

3) The decrease in revenue in October 2020 compared to October 2019 as well as the decrease for the period January-October 2020 to the comparable period in 2019 is mainly driven by drop of non-core sales to third parties of antimony lead alloys and the lower levels of the lead LME index in October 2020 and for the period January-October 2020 versus the comparative periods in 2019.  

4) The drop in net profit before taxes for the period January-October 2020 versus the comparative period in 2019 is mainly attributable to: a) the increase in the depreciation expense of MONBAT AD on a consolidated basis compared to the previous period with a significant portion of the higher expenses in 2020 being attributable to depreciation deductions related to the adopted accounting policy with respect to the acquired investment property in July 2019; b) the increase of FX losses stemming mostly from the dollar weakening against the EUR with Monbat having receivables from one client in Middle East denominated in USD and the weakening of the Nigerian naira affecting the trade operation of the Group in Nigeria.