January 31 (SeeNews) - Bulgarian battery manufacturer Monbat [BUL:MONB] said that its standalone net profit rose to 5.51 million levs ($3.04 million/2.8 million euro) last year from some 1.2 million levs in 2021, as expenses declined more than 9%.
Total operating revenue fell due to a drop in sales to 340.4 million levs as at end-December compared to 366.4 million levs in the prior year, Monbat said in an interim financial report on Monday.
Sales of products declined over 7% year-on-year in the review period to some 320.4 million levs. In 2022, there was a fall in revenue from client contracts as a result of lower demand for car batteries, which was chiefly due to weather conditions in Europe where most of Monbat's clients are located, the company noted.
At 143.6 million euro ($155.3 million), Monbat's standalone revenue from exports made up just under 86% of its total sales revenue last year. Germany remained Monbat's largest market, contributing 10.85% of total net export revenue. The company exports to over 77 markets, with major ones being France, Spain and Poland. Meanwhile, the domestic market yielded a sales revenue of 46.1 million levs or 14.1% of the total amount.
The battery maker's expenses went down to 334.2 million levs in 2022 from 365.9 million levs a year earlier, even though costs for materials were 5.4% lower at 204.9 million levs. Cost for hired services and salary expenses were flattish.
The war in Ukraine is not expected to affect Monbat's supply chains and no delivery interruptions are forecast as the company is not directly reliant on supplies via Russia and Ukraine, it said. Sales to these two countries amounted to 2.6% and 2.5% of total exports in 2022, Monbat added.
Earlier this month, Monbat repaid the principal of a 28 million euro bond after pushing back repayment on account of a delay in finalising a transaction with collapsed UK battery cell technology firm Britishvolt.
Shares in Monbat closed flat at 4.40 levs on Monday.
(1 euro = 1.95583 levs)