AS AT 30.09.2025 PURSUANT TO article 100o, paragraph 4, item 2 OF LPOS
IMPORTANT DEVELOPMENTS FOR MONBAT AD THAT OCCURRED DURING THE PERIOD (01.01.2025 - 30.09.2025)
During the period (01.01.2025 - 30.09.2025) Monbat AD has disclosed to the FSC, BSE AD and the public the following information through the information platform x3news.com, available at - https://http://www.x3news.com, as well as on the corporate page of the company, available at https://www.monbatgroup.com/bg
Table No 1Date
Developments
15-01-2025
MONBAT AD announced invitation to an Extraordinary General Meeting of Shareholders
with the following agenda and proposed resolutions:
1. Approving a resolution for election of a certified auditor to express assurance regarding the sustainability report of Monbat AD for 2024. Proposal resolution: The General Assembly of Shareholders approves a resolution for election of "Grant Thornton" OOD as a certified auditor to express assurance regarding the sustainability report of Monbat AD for 2024, in accordance with the proposal of the audit committee.
20-01-2025
MONBAT AD announced the following information: Inside information under art. 17, para 1, in relation with art. 7 of the Regulation (EU) No 596/2014 - Announcement:
NOTIFICATION REGARDING LAST PRINCIPAL AND INTEREST PAYMENT MADE ON AN ISSUE
OF CORPORATE BONDS, ISIN CODE - BG2100023170 MONBAT AD, as issuer of the bond issue, ISIN code BG2100023170, hereby notifies that a payment of principal and interest in the total amount of EUR 14 475 947.64 was made on 20-01-2025, whereby the bond issue was fully repaid.
The date on which the composition of bondholders who received payment was determined:17-01-2025.
30-01-2025
MONBAT AD announced the 2024 Q4 Individual financial report.
20-02-2025
MONBAT AD announced the following information: Inside information under art. 17, para
1, in relation with art. 7 of the Regulation (EU) No 596/2014 -
NOTIFICATION REGARDING GENERAL MEETING OF SHAREHOLDERS NOT CONVENED
With entry No. 20240528162605 in the Commercial Register and the Register of Not-for Profit Legal Entities, an invitation has been announced for an Extraordinary General Meeting of Shareholders duly convened for February 20, 2025 at 10:30 a.m., 1000 Sofia, "Gurko Blvd."1, Grand Hotel Sofia, Serdika Hall.
On the previously announced date of the General Meeting, 2 545 993 shares or 6.53% of the Company's capital were registered. Pursuant to Article 29, par. 1 of the Articles of Association
Date
Developments
of MONBAT AD, the General Meeting is legal if more than half of the entire capital of the Company is represented.
Due to the lack of quorum, the meeting was not held on the first date announced in the invitation for the EGM.
In accordance with Art. 227 par. 3 of the Commercial Law (LC) and the announced invitation to convene it, the Extraordinary General Meeting of Shareholders will be held on the reserve announced date - 07.03.2025 at 10:30 a.m. (Eastern European Standard Time EET=UTC+3) or 07:30 a.m. (Coordinated Universal Time UTC), at the same place and with the same agenda.
The agenda of the meeting cannot include items pursuant to 223a of the Commercial Law.
Registration of shareholders will take place on the day of the General Meeting from 09:00 to 10:00 (Eastern European Standard Time EET=UTC+3) on the day of the General Meeting.
28-02-2025
MONBAT AD announced the 2024 Q4 Consolidated financial report
28-02-2025
MONBAT AD announced Semi-annual report in pursuance of Art. 100f (1), item 2 in relation
to Art. 100f (2) of the POSA about fulfilment of the obligations of an issuer, related to its bond issue.
10-03-2025
MONBAT AD announced Minutes from a General shareholders meeting.
27-03-2025
MONBAT AD announced the 2024 Annual individual financial report.
25-04-2025
MONBAT AD announced the 2024 Annual consolidated financial report
30-04-2025
MONBAT AD announced the 2025 Q1 Individual financial report.
20-05-2025
MONBAT AD announced invitation for convocation of a regular attendance session of the Annual general assembly of the shareholders of MONBAT AD.
The Board of Directors of Monbat AD, on the grounds of the provisions of Art. 223, para. 1 of the Commercial Act convenes a regular annual attendance session of the General Assembly of the Shareholders on 23.06.2025 at 10.30 EEST (EEST=UTC+3) or 7:30 (UTC) with the Unique identifier of the event MONB23062025RGOSA, ISIN code BG1100075065, in the city of Sofia, No 1, Gurko Blvd., Grand Hotel Sofia, 1 Serdika hall, under the following agenda and draft resolutions:
1. Approving the audited Annual financial Report on the company's activities for the year 2024 prepared according to the Delegated Regulation (ЕС) 2019/815 and submitted to Financial Supervision Commission (FSC), Bulgarian Stock Exchange (BSE) and to the public. Proposal for a Resolution: The General Assembly of Shareholders approves the audited Annual financial Report on the company's activities for the year 2024 prepared according to the
Delegated Regulation (ЕС) 2019/815 and submitted to Financial Supervision Commission
Date
Developments
(FSC), Bulgarian Stock Exchange (BSE) and to the public.
Adopting the Report for the implementation of the Remuneration Policy of the members of the Board of Directors of Monbat AD for 2024. Proposal for a Resolution: The General Assembly of Shareholders adopts the Report for the implementation of the Remuneration Policy of the members of the Board of Directors of Monbat AD for 2024.
Approving the audited consolidated Annual financial Report on the company's activities for the year 2024 prepared according to the Delegated Regulation (ЕС) 2019/815 and submitted to Financial Supervision Commission (FSC), Bulgarian Stock Exchange (BSE) and to the public. Proposal for a Resolution: The General Assembly of Shareholders approves the audited consolidated Annual financial Report on the company's activities for the year 2024 prepared according to the Delegated Regulation (ЕС) 2019/815 and submitted to Financial Supervision Commission (FSC), Bulgarian Stock Exchange (BSE) and to the public.
Adopting a decision to release from responsibility the members of the Board of Directors for their activities during 2024. Proposal for a Resolution: The General Assembly of Shareholders releases from responsibility the members of the Board of Directors for their activities during 2024.
Approving the Annual Report on the activities of the IR Director of Monbat AD for the year 2024. Proposal for a Resolution: The General Assembly of Shareholders approves the presented Report on the activities of the IR Director for the year 2024.
Approving the Report on the activities of the audit committee for the year 2024. Proposal for a Resolution: The General Assembly of Shareholders approves the presented Report on the activities of the audit committee of Monbat AD for the year 2024.
Adopting a decision for electing the audit committee of the company. Proposal for a Resolution: The General Assembly of Shareholders elects an audit committee with the following members: Anelia Petkova Angelova - Tumbeva, Iskra Simeonova Atanasova and Sashka Dineva Ileva.
Taking a decision for setting up the mandate of the audit committee and the amount of the remuneration of its members. Proposal for a Resolution: The General Assembly of Shareholders sets up one-year mandate of the audit committee and the amount of the remuneration of its members, as follows: for a participation in each session of the audit committee its members shall receive remuneration in the net amount of BGN 500 and for the Chairman of the audit committee - remuneration in the net amount of BGN 700.
Election of a certified auditor for the year 2025. Proposal for a Resolution: The General Assembly of Shareholders approves a resolution for election of a certified auditor for the year 2025 in accordance with the proposal of the audit committee.
Adopting a resolution for changes of the Board of Directors. Proposal for a Resolution: The General Assembly of Shareholders approves a decision for changes of the Board of Directors, namely: Releases from her position as a member of the Board of Directors of the
Date
Developments
Company Evelina Slavcheva. The General Assembly of the Shareholders elects Krasimira Staneva as a new member of the Board of Directors for 5 year mandate.
29-05-2025
MONBAT AD announced The Consolidated Q1 2025 financial report.
29-05-2025
MONBAT AD announced Semi-annual report in pursuance of Art. 100f (1), item 2 in relation
to Art. 100f (2) of the POSA about fulfilment of the obligations of an issuer, related to its bond issue.
24-06-2025
MONBAT AD announced the minutes of the general meeting of shareholders held on 23-06-
2025 at 10:30 a.m.
30-07-2025
MONBAT AD announced The Q2 2025 financial report.
29-08-2025
MONBAT AD announced The Consolidated Q2 2025 financial report.
Adopting a resolution for set up the remuneration of the new elected member of the Board of Directors. Proposal for a Resolution: The General Assembly of the Shareholders sets up the remuneration of the new elected member of the Board of Directors - net month remuneration amounted to BGN 3 000.
Adopting a resolution for set up the guarantee of the new elected member of the Board of Directors. Proposal for a Resolution: The General Assembly of the Shareholders sets up the guarantee of the new elected member of the Board of Directors - three gross month salaries.
Adopting a decision for distribution of the company's profit generated in 2024 in the amount of BGN 4 966 084.39. Proposal for a Resolution: The company's profit after taxes, generated during the year 2024 in the amount of BGN 4 966 084.39 to be assigned to the Non distributed profit from past years fund.
All important events that occurred after the date of the annual closing were disclosed through the disclosure system of Monbat AD, namely - the regulated securities market, the Financial Supervision Commission and the public. The information is also available on the company's website https://www.monbatgroup.com.
No adjusting or other significant non-adjusting events have occurred between the date of the interim condensed financial statements and the date of approval for publication, except for those disclosed in the annual individual and annual consolidated statements of Monbat AD, prepared as of 31.12.2024.
-
IMPACT OF THE IMPORTANT DEVELOPMENTS FOR MONBAT AD THAT OCCURRED AS AT
30.09.2025 ON THE RESULTS IN THE FINANCIAL STATEMENTS
For the period 01.01.2025 - 30.09.2025, MONBAT AD reports consolidated revenues from contracts with customers in the amount of BGN 291 110 thousand, which represents an increase of 4.6% compared the revenues for the same period of 2024 in the amount of BGN 278 401 thousand.
For the reporting period of 2025 normalized EBITDA (profit before interest and amortization, decreased with financial incomes and impairments and increased with financial expenses) from continuing operations amounts to BGN 24 844 thousand compared to BGN 29 011 thousand in the same period of 2024. This represents a decrease in EBITDA of 14.4%.
For the reporting period of 2025 EBIT (earnings before tax, increased by financial expenses and reduced by financial income) from continuing operations of MONBAT AD is BGN 5 931 thousand, compared to EBIT from continuing operations for the same period of 2024 of BGN 11 121 thousand.
The financial result before taxes from continuing operations of MONBAT AD for the reporting period of 2025 is BGN (1 328) thousand, compared to the consolidated profit from continuing operations before taxes for 2024 of BGN 4 902 thousand.
The consolidated net financial result of MONBAT AD for the period 01.01.2025 -30.09.2025 is BGN (2 682) thousand, compared to the net profit of the Group the same period in 2024, which is BGN 3 528 thousand.
FINANCIAL INDICATORS
Table No 2LIQUIDITY RATIOS
30.9.2025
30.9.2024
Total liquidity ratio
1.28
1.31
Quick liquidity ratio
0.80
0.86
Absolute liquidity ratio
0.08
0.07
Immediate ratio
0.08
0.07
PROFITABILITY RATIOS
30.9.2025
30.9.2024
Profitability of capital
(0.060)
0.103
Return on equity (ROE)
(0.011)
0.018
Return assets (ROA)
(0.005)
0.008
Table No 4LEVERAGE RATIOS
30.9.2025
30.9.2024
Financial leverage
1.15
1.13
Debt/Assets
0.54
0.53
Financial autonomy
0.87
0.89
FINANCIAL RATIOS
30.9.2025
30.9.2024
EBITDA from continuing operations
24 844
29 011
EBIT
5 931
11 121
DESCRIPTION OF THE PRINCIPAL RISKS AND UNCERTAINTIES WHICH MONBAT AD WILL FACE DURING THE FOLLOWING FINANCIAL PERIOD
SYSTEMATIC RISKS
Systematic risks are related to the market and the macro-environment the Company operates in and therefore could not be managed or controlled by the company management team. The following are examples of systematic risks: political risk, macroeconomic risk, inflation risk, currency risk, interest rate risk, tax risk.
Table No 6Risk type
Description
POLITICAL RISK
Political risk is the probability of a change of government or a sudden change in its policy, of domestic political turmoil and adverse changes in European and/or national legislation, resulting in a negative change in the environment in which local businesses operate and losses for investors.
The overall systemic political risk is moderate. Bulgaria is a democratic republic and has good international relations. It is a member of the EU and NATO and a candidate for OECD membership. The political risk for Bulgaria is related to the challenges of committing to structural reforms, raising social stability and living standards, reducing inefficient spending and pursuing sustainable EU policies. Despite the functioning of a regular government with an assured parliamentary majority supporting the policies pursued, Bulgaria continues to experience slow progress on EU-required reforms in the judiciary and anti-corruption measures, combined with public dissatisfaction with living standards as well as high vulnerability to external shocks due to high dependence on exports.
OVERALL
MACROECONOMI
According to data from the National Statistical Institute as of 30 September 2025 the overall
business climate indicator in September 2025 increased by 0.6 points compared to August (from
C RISK
20.2% to 20.8%), with growth in the indicator recorded in industry and retail trade.
Source: NIS
In September 2025, the composite indicator "business climate in industry" increased by 0.5 points (from 18.3% to 18.8%), which is due to improved assessments by industrial entrepreneurs of the current business situation of enterprises. According to them, there has been a certain increase in the security of production with orders over the last month, which is accompanied by increased expectations for production activity over the next three months. Managers' forecasts for sales prices in industry are that they will remain at their current level over the next three months.
In September 2025, the composite indicator "business climate in construction" decreased by 2.3 points (from 24.9% to 22.6%) as a result of more reserved expectations of construction entrepreneurs for the business situation of enterprises in the next six months. Their forecasts for construction activity over the next three months also deteriorated, as the survey reported an increase in the number of clients with payment delays. Over the past month, the negative impact of the "uncertain economic environment" factor has increased, replacing labor shortages in second place. With regard to sales prices in construction, managers expect them to remain unchanged over the next three months.
In September 2025, the composite indicator "business climate in the services sector" decreased by
1.6 points (from 15.9% to 14.3%) as a result of managers' worsened assessments of the current business situation of enterprises. The main obstacle to activity remains the uncertain economic environment, indicated by 51.1% of enterprises. In second and third place are competition in the industry and labor shortages. With regard to sales prices in the services sector, the majority of managers expect them to remain unchanged over the next three months.
According to the macroeconomic projections of Eurosystem experts, presented in Economic Bulletin No. 6/2025 of the European Central Bank, GDP growth is expected to be 1.2% in 2025, 1.0% in 2026, and 1.3% in 2027. Compared with the macroeconomic forecasts from June 2025, the GDP growth forecast has been revised upwards by 0.3 percentage points for 2025, reflecting better than expected incoming data and the inertial effect of the revision of historical data. The appreciation of the euro and weaker external demand (partly related to slightly higher tariffs than projected in June) led to a downward revision of 0.1 percentage points for 2026. The projections for 2027 remain unchanged.
INTEREST RISK
Interest rate risk is related to a possible negative change in interest rates established by the financial institutions of the Republic of Bulgaria.
At its meeting on September 11, 2025, the Governing Council of the European Central Bank decided to keep the three key ECB interest rates unchanged. Inflation is currently around the medium-term target of 2% and the Governing Council's assessment of the forecast remains broadly unchanged.
The ECB experts' macroeconomic forecasts from September 2025 present a picture of inflation that is similar to that forecast in June. They expect overall inflation to average 2.1% in 2025, 1.7% in
2026, and 1.9% in 2027. As for inflation excluding energy and food, experts expect an average level of 2.4% in 2025, 1.9% in 2026, and 1.8% in 2027. Economic growth is forecast at 1.2% in 2025, revised upwards by 0.9% compared to the June forecasts. Growth expectations for 2026 are now slightly lower at 1.0%, while the forecast for 2027 remains unchanged at 1.3%.
* Source:BNB
INFLATION RISK
Inflation risk is a general price increase in which money depreciates, and households and firms are likely to incur losses.
Consumer price index: In September 2025, monthly inflation was -0.8%, and annual inflation for September 2025 compared to September 2024 was 5.6%. Inflation since the beginning of the year (September 2025 compared to December 2024) is 3.4%, and the average annual inflation for the period October 2024 - September 2025 compared to the period October 2023 - September 2024 is 3.8%.
Harmonized Index of Consumer Prices: In September 2025, monthly inflation was -0.6%, and annual inflation for September 2025 compared to September 2024 was 4.1%. Inflation since the beginning of the year (September 2025 compared to December 2024) is 2.7%, and the average annual inflation for the period October 2024 - September 2025 compared to the period October 2023 - September 2024 is 3.1%.
*Source:NSI
CURRENCY RISK
The currency risk exposure is the dependence on and the effects of the currency exchange rates changes. The systematic currency risk is the probability of possible change in the currency regime of the Country (Currency Board), which would result either in devaluation of the Bulgarian lev (BGN) or in appreciation of the BGN against foreign currencies.
Currency risk will have impact on companies with market shares, which are completed in a currency other than BGN and EUR. Due to the laws in force in the country, the Bulgarian lev is fixed to the Euro at an exchange rate of EUR 1 = BGN 1.95583, and the Bulgarian National Bank has to maintain a level of Bulgarian leva in turnover equal to the currency reserves of the bank, the risk of devaluation of the BGN compared to the European currency is minimum, and for the most part consists in a possible elimination of the currency board in the country. At this stage, this appears to be very unlikely because the Currency Board is expected to be removed at the time of accepting the Euro as official legal tender in Bulgaria.
On July 8, 2025, the Council of the European Union officially approved Bulgaria's accession to the Eurozone on January 1, 2026, and fixed the exchange rate of the lev at 1.95583 per euro. This is
the current central rate of the lev in the exchange rate mechanism (ERM II), in which the currency
has participated since July 10, 2020. The exchange rate of the lev is established by an amendment to Regulation (EC) No 2866/98, which will enter into force on January 1, 2026.
According to data from the Ministry of Finance, on July 10, 2025, Bulgaria's long-term foreign currency credit rating was upgraded to 'BBB+' with a stable outlook with exceptional rating actions by international rating agencies Fitch Ratings and S&P Global Ratings. This is the highest grade of the middle-class investment ratings, according to the Ministry of Finance. The leading factor for the upgrade of the country's rating is the official decision of the Council of the European Union on Bulgaria's accession to the Eurozone, effective January 1, 2026. In its rationale for the rating action, S&P Global Ratings notes that Bulgaria will benefit from the ECB's reliable monetary policy and the developed capital markets of the monetary union, while currency risk will decrease significantly. It considers that Bulgaria's EU membership and its forthcoming accession to the eurozone continue to enable the country to implement important policies. Bulgaria's short-term growth prospects are assessed as stable. The economy is forecast to grow by 2.4% in real terms in 2025 and by an average of 2.8% until 2028. Private consumption will be the main driver of growth, supported by high real wage growth due to the tight labor market. The rating agency notes that Bulgaria's full membership in the Schengen area, effective January 1, 2025, together with its accession to the Eurozone, could support trade and international tourism by reducing administrative barriers.
According to BNB data from 30.10.2025, the gross external debt at the end of August 2025 amounted to EUR 53,605.9 million (47.7% of GDP), which is EUR 9,015.2 million (20.2%) more than at the end of August 2024 (EUR 44,590.7 million, 42.6% of GDP). At the end of August 2025, short-term liabilities were EUR 8,700.5 million (16.2% of gross debt, 7.7% of GDP) and increased by EUR
503.3 million (6.1%) compared to August 2024 (EUR 8,197.3 million, 18.4% of debt, 7.8% of GDP). Long-term liabilities amounted to EUR 44,905.4 million (83.8% of gross debt, 40% of GDP) at the end of August 2025, increasing by EUR 8,512 million (23.4%) compared to the end of August 2024 (EUR 36,393.4 million, 81.6% of debt, 34.7% of GDP).
TAX RISK
Preservation of the current taxation regime is of defining importance for the financial result of the companies. There is no guarantee that the tax laws, which are of direct consequence for the operation of the company, would not be changed in a direction which would result in a significant overhead expense, and respectively would have an adverse effect on the profit of the company. The taxation system in Bulgaria is still undergoing the process of development and consequently the existence of contradictory tax practices is a possibility.
GEOPLITICAL RISKS
Geopolitical risks arising from potential adverse events such as wars, terrorist acts, and tensions between individual countries, including trade wars, have the potential to disrupt international relations as well as economic stability, and have increased significantly in recent years. For example, manifestations of geopolitical risk events based on conflicts, wars, and terrorist attacks, along with rising military spending by countries globally and restrictions on cross-border trade and financial transactions, have increased since 2022 compared to previous years. The increase in geopolitical risks could threaten financial stability, manifesting itself through actual or potential restrictions on cross-border trade, which could ultimately trigger a restructuring of capital flows and cause sudden adjustments in asset prices. The negative effect on asset prices could threaten financial stability at the macro level by affecting the liquidity and solvency of financial and nonfinancial entities. The impact of geopolitical risks on asset prices may vary across asset classes, sectors, and countries. For example, supply disruptions may increase commodity prices but reduce stock prices if the disruptions are expected to have an adverse effect on economic activity. Differences may also arise between sectors: for example, following Russia's invasion of Ukraine in 2022, prices of financial assets (such as stocks, government bonds, and exchange rates) fell immediately, while commodity prices (oil, grains) rose significantly due to concerns about supply disruptions.
The impact on countries is also likely to vary depending on their economic and structural characteristics. For example, commodity exporting countries may benefit if commodity prices rise
in response to a specific geopolitical risk event. Countries directly affected by a specific geopolitical risk event may experience more severe consequences from physical damage or the imposition of
trade and financial restrictions, while the impact may be minimal for other countries. Geopolitical risk events can significantly affect countries that have close economic and financial relations with countries affected by conflicts.
Geopolitical risk can manifest itself in the form of trade tensions. Although measures affecting free trade are not necessarily related to geopolitical risk, trade tensions such as tariffs, trade wars, and sanctions can be imposed for geopolitical reasons and can strongly influence international relations and ultimately affect the price of goods. Increased geopolitical risks can affect sovereign risk (also known as country risk-the risk of a country defaulting on its debt obligations). This may occur due to ever-increasing defense spending, which weighs heavily on governments' fiscal outlook, as well as a deterioration in economic activity, raising serious concerns about fiscal sustainability. Events related to geopolitical risks have a more pronounced impact on economies with smaller fiscal and international reserve buffers.
UNSYSTEMATIC RISKS
RISK OF PRICE CHANGES IN THE BASIC PRIME AND RAW MATERIALSThe principal activity of MONBAT AD is production and trading with accumulator and lead-acid batteries - starter batteries, stationary batteries for telecom application, semi-traction batteries, specialized batteries - army power range and locomotive batteries. Major prime and raw materials for the company's production process are lead and lead alloys, polypropylene, polyethylene separator and sulfuric acid. In 2025 lead takes approximately 62% of the cost structure per unit.
**Average lead price or the period 01.01.2025 - 30.09.2025 is - 1 960.62 USD/MTThe risk of price change in the basic raw material - lead is being managed through construction of company's own recycling facilities and through an indexation of sales prices to end customers.
DEPENDENCE OF MONBAT AD ON DISTRIBUTORS, SUPPLIERS, CUSTOMERSThere is no dependence of MONBAT AD on customers due to the fact that Group's sales are not made directly with customers but through the mediation of an extensive distribution network in the country and abroad. Significant part of the sales with deferred payment in the country and for export is being insured in the Bulgarian Export Insurance Agency (BAEZ), COFACE or Credendo by reason of which the risk of non-payment on the part of the customers is mitigated.
As a result of its marketing and distribution strategy, Monbat enjoys excellent market diversification, with sales in more than 75 countries and important markets for this period are Germany, France, Italy, and Tunisia. With its well-developed distributor network Monbat accesses end customers in from all the major markets in the EU, the Middle East, North and South Africa. Starter batteries ultimately are retailed through automotive retailers and repair shops. Stationary batteries are sold directly to telecom companies and other users.
Breakdown of the sales by markets for the first nine months of 2025 is shown in the table
below.
Table No 730.9.2025
30.9.2024
Country
Export
(BGN '000)
%
Export
(BGN '000)
%
Germany
16 220
11.9
14 877
11.3
France
12 559
9.2
11 958
9.1
Tunisia
9 718
7.1
9 393
7.1
Italy
9 457
7.0
10 135
7.7
Romania
8 514
6.3
6 932
5.3
Greece
6 161
4.5
6 238
4.7
Hungary
5 195
3.8
1 926
1.5
South Africa
5 014
3.7
391
0.3
Poland
4 907
3.6
4 664
3.5
Algeria
4 732
3.5
4 295
3.3
Serbia
4 233
3.1
2 817
2.1
Netherlands
3 762
2.8
4 463
3.4
Ukraine
3 744
2.8
5 419
4.1
Israel
3 593
2.6
1 001
0.8
Sweden
3 584
2.6
4 231
3.2
United Kingdom
3 436
2.5
4 722
3.6
Spain
3 218
2.4
5 616
4.3
Austria
2 581
1.9
1 032
0.8
Ireland
2 100
1.5
1 848
1.4
Others
23 281
17.2
29 535
22.5
ОБЩО
136 009
100
131 493
100
For the period 01.01.2025 - 30.09.2025 MONBAT AD achieved consolidated revenues from international markets amounting to EUR 136 009 thousand, which represents 91.4% of the Group's total net sales revenues.
In 2025, major market for MONBAT AD was Germany with EUR 16 220 thousand revenues, which represents 11.9% of the total consolidated export of the Group.
Sales revenues generated on the domestic market in 2025 were BGN 25 099 thousand (EUR 12 833 thousand) and represent 8.6% of the net revenues of the Group.
INFLUENCE OF MACROECONOMIC AND GEOPOLITICAL FACTORSThe ongoing hostilities between Russia and Ukraine, the imposition of sanctions and restrictions by the European Union, the United States, Canada, Great Britain and other countries against Russia, the Russian Central Bank, credit institutions, companies, individuals, caused significant turmoil in the financial markets over the last three years, which brought continued geopolitical tensions, recalibration of economic growth, inflation, rising interest rates in the US and Europe, and rising commodity prices.
The Group actively analyses and manages the risks associated with the impact of macroeconomic, geopolitical and market factors on its financial performance.
Risk analysis and measures and actions taken:
In the first nine months of 2025, the Group reported a 4.3% decline in revenue from sales of rechargeable batteries, as a result of lower lead commodity rates (see below) and sales volumes at the level of the comparable period. 2 391 thousand batteries were sold during the reported period, broken down by geographical and product segments as follows:
Significant growth in battery sales in targeted high-margin markets such as South Africa and Israel, which offsets the lack of sales to customers in Saudi Arabia, where significant volumes were realized in 2024, albeit at low profitability, as well as a decrease of sales to customers in Spain.
In 2025, sales to Saudi Arabia were externally constrained due to the negative effects of the volatility of the euro-dollar exchange rate and the significant depreciation of the US currency, which is traditionally used for trading in the Middle East region.
Growth of over 30% in sales of rechargeable batteries and raw materials for their production (lead plates) by the Industrial Group Nour Tunisia to customers in Europe and, above all, North Africa, while maintaining its leading role in the local Tunisian market.
In addition to the Group's core business - the production and sale of rechargeable batteries, in 2025 the other segments of the Monbat Group offset the lower battery sales compared to 2024 through:
Significantly higher sales of lead and lead alloys (more than 6 thousand tonnes in 2025) from the Group's recycling plants to third parties, including raw lead produced by the new metallurgical furnace commissioned in early 2025 at the Group's recycling plant in Italy.
Higher revenues from consulting, engineering, and logistics services provided by the Group's companies.
As a result of market volatility, the 2025 average market price of lead was around 1 757 EUR/MT (2024: 1 928 EUR/MT). A particularly significant decline was observed at the beginning of April 2025, after which the market price for the second quarter of 2025 (EUR 1 717/MT) was significantly lower than that for the first quarter of 2025 (EUR 1 871/MT).
Although the Group traditionally addresses market volatility and the dependence of lead prices on stock market indices by applying standard indexation to the selling prices of its products and purchases of lead-containing raw materials, in the second quarter of 2025 the Group reported a significant negative effect on its profitability (of over BGN 3 million) as a result of the above-mentioned collapse in the price of lead and the realization of available material stocks at lower, downwardly indexed sales prices.
During the first nine months of 2025, the European Central Bank (ECB) lowered its base interest rates three times, with a total effect of 75 basis points. As a result, the Group reported a decrease in net financing costs of BGN 1 621 thousand, or 21% compared to the same period in 2024.
The Group analyzes on an ongoing basis all possible impacts of changing micro and macroeconomic conditions on the Group's future financial position and results of operations. Inflationary processes, expressed in increased costs of direct materials, energy and labour per unit of production, have a significant impact on the Group's operations. The Group has been able to limit the effect of these negative impacts of the macroeconomic environment by refining its customer and product mix (with a focus on higher-margin products and markets) and, where necessary, applying indexation of selling prices to its customers.
INFORMATION ABOUT THE CONCLUDED LARGE TRANSACTIONS WITH RELATED PARTIES AS AT 30.09.2025
All transactions with related parties have been announced in the interim consolidated financial statement of MONBAT as at 30.09.2025.
Date: 28.11.2025
For MONBAT AD:
Viktor Spiriev
/ Executive member of the Board of Directors /