Bulgaria's MonBat sees profit sharply up in 2016, plans new investments

SOFIA (Bulgaria), December 8 (SeeNews) – Bulgarian car battery producer MonBat [BUL:5MB] expects a sharp increase in profits in 2016 and is considering a share buyback, the chairman of the company's board of directors, Atanas Bobokov, said on Tuesday.

In addition, MonBat will pour 12 million euro ($13 million) in 2016 in projects that would guarantee a quick return on investment while raising the company's earnings before interest, taxes, depreciation, and amortization (EBITDA), Bobokov told a local TV station.

MonBat also plans to invest a further 3 million euro in 2017.

Plans for the payment of dividends and for the repurchase of shares will be discussed by the board of directors in February-March 2016.

The company will not close or sell its plant in Serbia, Bobokov added.

In June 2014, Bobokov said that MonBat was planning to sell its battery recycling plant in Serbia due to lack of raw materials and competitive pressure, among other reasons.

The reason for the recent decrease in the company's profit amid sales growth were historically low prices of lead, the main raw material used. This along with low prices of batteries leads to a reduction in profit, Bobokov said.

MonBat, which operates four plants for manufacturing and recycling of lead-acid batteries, diodes and light-emitting diode luminaires, saw its consolidated net profit rise 9% to 22.6 million levs in 2014.

($=0.9194 euro)

Choose your newsletter by Renewables Now. Join for free!