May 2020, Monthly Results

In May, 2020 the companies in the economic group of Monbat AD have generated consolidated net sales revenues from continuing operations in the amount of BGN 17 996 thousand which represents a decrease of 31,50% compared to the consolidated net sales revenues generated in May, 2019.  

The summarized data for the first five months of 2020 show that the companies in the economic group of Monbat AD have generated consolidated net sales revenues in the amount of BGN 111 105 thousand which represents a decrease by 15.80% compared to the consolidated net sales revenues for the same period of 2019.

The generated net sales revenues from continuing operations for the first five months of 2020 in the amount of BGN 111 105 thousand are allocated as follows:

The generated consolidated result from continuing operations (without the led lightning business segment) before taxes of the companies in the economic group of Monbat AD for May, 2020 is a profit of BGN 1 465 thousand, which represents an increase by 125.70% compared to the prior period of 2019.

The summarized data for the first five months of  2020 show that the companies in the economic group of Monbat AD have generated profit before taxes in the amount of BGN 5 226 thousand , which represents a decrease by 41.30% compared to the generated consolidated profit before taxes for same period of 2019.

The consolidated EBITDA of the Group from continuing operations for May 2020 stands at BGN 3 034 thousand which represents an increase by 41.10% to the comparative period of May 2019.

The summarized data for the first five months of 2020 show that the companies in the economic group of Monbat AD have reached EBITDA to the amount of BGN 13 774 thousand which represents a decrease by 16.90% compared to same period of 2019.

Note:

1) In March 2019 the Group has recognized EBITDA to the amount of BGN 1,283 thousand related to accrued income with respect to government subsidy received in May 2019 for recycling of scrap batteries conducted by Monbat Recycling Serbia in 2018 on the territory of Republic of Serbia.

In May 2020 the Group has recorded revenue in connection with the expected subsidy for 2019 to the amount of BGN 1,414 thousand, as a contract has been signed with the ministry of Republic of Serbia which validates the expected payment and respective amount of subsidy. The payment is expected to be made in June 2020.

2) According to the Regulation on establishing the terms and conditions for payment of product fees for products whose use generates mass waste as of 31 December 2018 Monbat AD has accrued product fee for lead-acid batteries sold on the Bulgarian market, by reducing respectively revenue from sale of production with BGN 793 thousand in 2018 and by accruing a product fee liability for the same amount. The fee was not paid effectively to the Ministry of Environment and Water, as Monbat AD has met the requirements of the Waste Management Act and has carried out activities for collection, transportation, temporary storage, pre-treatment, dismantling and disposal of waste. By order № RD 376 of 13.05.2019 of the Ministry of Environment and Water, the accrued product fee for 2018 has been remitted and Monbat AD reported revenue in the amount of BGN 793 thousand in May 2019.

In May 2020 the Group has not recorded revenue with respect to product fee for FY 2019 to the extent that in 2019 in view of the certainty about the expected non-payment of the product fee, Monbat AD has not deducted the product fee from the realized sales of batteries on the Bulgarian market.

3) Other revenues recognized in the comparable period January-May 2019 are adjusted with BGN 3,894 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.