Monbat’s Q4’13 uncons net profit more than doubles to BGN 7.9m (POSITIVE)

Monbat’s Q4’13 unconsolidated sales rose 16% YoY to BGN 71.2m, including a 6% increase of sales to subsidiaries to BGN 12.6m (mainly materials sold to battery producer Start). Opex increased just 3% YoY: materials costs rose 15%; compensation costs added only 2% as labour productivity improved following upgrades in 2012 and hired services costs rose 2% as well. As a result, EBITDA jumped to BGN 9.9m from BGN 1.6m for Q4’12, reflecting EBITDA margin of 14%, up from 2.7% for Q4’12. Net profit surged to BGN 7.9m from BGN 3.5 for the year-ago period. Full-year revenues increased 34% to BGN 246.1m with BGN 49m out of it (+52% YoY) reflecting sales to subsidiaries. EBITDA climbed to BGN 29.8m, 2.4x the 2012 figure. Again the reason for the improvement was the optimisation of opex, excluding materials costs, which rose 35%. Net income surged to BGN 22.5m from BGN 9.1m for 2012. On the balance sheet, the increase of issue premiums following the sale of the treasury stock in the last quarter of 2013 boosted equity by BGN 12m. IB debt declined to BGN 27.4m (18% IB debt-to-equity) from BGN 36.4m (30% IB debt-to-equity) at the end of 2012 as the company repaid a significant part of ST debt in Q4. CFO strengthened to BGN 25.3m from BGN 14.7m for 2012 as inflows from clients jumped 35%, while payments to suppliers rose 29%.