HES Apr’22 sales rose 31.4% YoY; management expects 50.5% YoY increase in May’22 revenue (NEUTRAL)

20.05.2022 Source: Hydraulic Elements and Systems; FFBH

Hydraulic Elements and Systems (HES) monthly sales jumped 31.4% YoY to BGN 7.9m in Apr’22. The figure came 0.9% above the management’s expectations. However, pre-tax earnings for the month decreased 10.5% YoY and amounted to BGN 1.2m. Jan-Apr 2022 sales stood at BGN 31.4m (+40.3% YoY), while EBT advanced to BGN 4.3m (+24.7% YoY) due to the strong performance year to date. EBT margin for the month stood at 15.6% (-7.3 p.p. YoY), which brought 4-mo margin down by 1.7 p.p. YoY to 13.6%. May2022 is expected to bring the company revenue of BGN 7.5m (+50.5% YoY), which would bring YTD sales to BGN 38.9m (+42.2% YoY).