HES Apr’19 sales reach BGN 5.5m missing guidance, EBT shrinks YoY (NEGATIVE)

Hydraulic Elements and Systems (HES) Apr’19 revenue grew by 2.7% YoY to BGN 5.5m. The figure came 10.7% below the BGN 6.2m that the management expected. Pre-tax earnings fell by 4.9% YoY to BGN 481k, a 0.7 p.p. margin decline (8.8%). YTD sales (BGN 24.2m) growth reached 10.5% on 8.4% increase in EBT (10.4% margin, -0.2 p.p. YoY). The management expects the monthly sales to grow 3.9% YoY and reach BGN 5.4m in May.