Sunlight: 1st Quarter 2018 Financial results

  • The Group’s turnover during the 1st quarter of 2018 reached 76 million Euro against 95,6 million Euro for the corresponding period in 2017.
  • The over 20% increase in the 1st quarter of 2018 in production, sales and organic growth was interrupted by the fire in the industrial batteries department at the Xanthi factory.
  • The Company is working hard to quickly restore the damages incurred. From September production commences once again as well as the gradual market supply, in which Sunlight has significant share, aiming to reach 100% of production capacity in the first quarter of 2019.
  • The Company is insured by a consortium of insurance companies with a total coverage of over 140 million Euro.
  • Sunlight has the support of all its stakeholders (customers, employees, shareholders, bondholders, banks, suppliers, etc) and sustains job positions.

The year started dynamically for Sunlight group, member of the Olympia Group, in production, sales and organic growth. Sales increased over 20% in the first quarter, following the industrial batteries international market’s upward trend, which continues to grow with healthy rates. The Group’s positive progress was interrupted by the fire incident on the May 1st , in the industrial batteries department at the Xanthi factory and impaired the production and commercial operations.

More analytically, the Group’s turnover from continuous operations during the 1st quarter of 2018 reached 76 million Euro against 95,6 million Euro for the corresponding period in the previous year, while the Group’s turnover from continuous operations reached 89,6 million Euro against 109,2 million Euro in 2017. It should be mentioned that, the consumer batteries sector was sold in July and therefore its sales are not included in its operational activities.. Earnings before interest, tax, depreciation and amortization (EBITDA) at Group level reached -27,2 million Euro (-26,7 million Euro for the Company) against 13 million and 12,2 million Euro in 2017, a result of assets impairment and operational inactivity in the last two months of the current semester. Nevertheless, the adapted EBITDA, excluding the fire damages, reached 6,8 million Euro.

The Management focuses on the quick restoration of the damages, aiming to restart gradual market supply, in which Sunlight has significant share, while keeping all job positions intact as a sign of appreciation to the workforce’s contribution to the successful operations in the last years.

The submarine batteries production department is expected to reopen in September as planned, and the industrial batteries department is expected to reopen in October. More specifically, the industrial batteries unit, which is the major revenue source for Sunlight, is expected to start with a 30% capacity which will gradually reach 50% by the end of the current year, with a prospect to fully restore Xanthi factory’s production capacity in the first quarter of 2019.

It is worth noting that the Company is fully insured against fire and profit loss with a total coverage of over 140 million Euro. The coinsurance scheme has already prepaid 18 million Euro, while the Company cooperates continuously with the representatives/experts for the quickest and mutually beneficial conclusion of the insurance indemnity procedure.

The CEO of SYSTEMS SUNLIGHT SA, Vasilis Billis, stated that: “With the undivided support of our people, our partners, our customers and our bondholders and despite the recent impairments, we at Sunlight expect to rebuild the factory, incorporating best practices that will help us regain our strategic position and expand our competitive advantage in the industrial battery international market. We are proceeding in this direction at the fastest pace”.

The Company is optimistic regarding opportunities in the market, it operates in, for the upcoming period. Fundamentals of drive and back-up batteries markets are healthy, given that in many developed countries (EU, N. America and East Asia) the trend is to promote “clean” energy sources and their efficient use.

In such a context and despite the recent difficulties, the Company continues to prioritize the development of technologically advanced products and solutions (including lithium batteries) which in turn will lead to further enhancement of its competitive position and ensure that SUNLIGHT will continue to be among one of the most innovative and reliable battery suppliers worldwide.