March 5 (SeeNews) - Bulgarian metal packaging manufacturer Bulmetal [BUL:BMTL] said its consolidated net profit dropped to 4.67 million levs last year from 8.65 million levs in 2022.
The company's earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at 14.3 million levs in 2023, marking a 24% annual decline, Bulmetal said in a bourse filing last week, citing preliminary data.
Total revenue grew to 116.3 million levs in the review period from 110.2 million levs the prior year, the company said in a separate statement. Performance was driven by machine sales, which grew by 30% year-on-year to over 34.5 million levs as a result of new markets such as Canada and Morocco and new orders from existing customers in Southeast Asia.
"At the end of 2023, we had already signed and begun projects for machines for over 43 million levs, which makes us optimistic for 2024," Bulmetal chief financial officer Boyko Shoylekov said.
In parallel, Bulmetal's operating expenses widened to 111.4 million levs from some 100.3 million levs. The rise was mainly due to higher costs for materials, which added 24% on the year to 76.2 million levs, and remuneration costs, which went up 23% to 16.9 million levs.
Overall, profitability in 2023 was negatively impacted by the higher prices of the group's inventory and a drastic jump in interest rates of bank financing, Bulmetal noted.
In December, the company raised over 8.2 million levs in an initial public offering on the Bulgarian Stock Exchange. It plans to use the proceeds to expand its production capacity and automate its processes, which will result in higher sales and lower production costs.
Gurkovo-based Bulmetal is a leading metal packaging manufacturer in Bulgaria, processing over 13,000 tonnes of raw materials annually and exporting over 70% of its production to clients in Central and Eastern Europe. Additionally, through its subsidiaries, Cevolani in Italy and BiBRA in Germany, the company is a key supplier of packaging machinery globally, with customers on five continents.
Shares in Bulmetal last traded on February 28 when they closed at 8.55 levs on the Bulgarian Stock Exchange, bourse data show.
(1 euro = 1.95583 levs)