Chimimport Q4’17 unconsolidated net income down 10% YoY (NEUTRAL)

Chimimport unconsolidated net profit decreased 10.4% YoY to BGN 3.1m in Q4’17. Chimimport booked BGN 0.3m profit from investments, compared with a BGN 1.6m loss in Q4’16. Net interest income increased to BGN 3.7m (+32.8% YoY). The holding company decreased other expenses 87% YoY to BGN 0.1m and compensation expenses to BGN 677k (-34% YoY). 90% Lower top line of BGN 1.3m (BGN 9m other revenue was reported back in Q4 2016), however resulted in an EBIT loss of BGN 411k. Prelim 2017 unconsolidated net profit was 9.4% higher YoY at BGN 36.9m. The increase came despite EBITDA turning BGN 1.7m negative, and financial income coming in 2% lower YoY (Income from investments gain of 14% to BGN 25.7m was fully offset by a BGN1.3m FX loss and decrease of interest income to BGN 10.2m, -19% YoY). The reversal of tax cost in the amount of BGN 4.2m vs tax cost of BGN 2.1m in 2016 was the main reason for the net profit growth.