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SYSTEMS SUNLIGHT S.A. – Financial Results 2017

March 19, 2018

Higher market shares and stronger sales volume in batteries for industrial use

  • The Consolidated Turnover of the Group accounted for € 194.5 million in 2017, posting a growth of 26% compared to 2016
  • The Consolidated Earnings before interest, taxes, depreciation and amortization (EBITDA) of the Group amounted to € 22.0 million posting a growth of 28% compared to 2016
  • The Company’s needs in lead were covered by more than 50% from SUNLIGHT Recycling
  • In 2017, the Group continued to implement its investment plan targeting higher production capacity of the production plant in Neo Olvio, Xanthi, Greece  

Commenting on the results of the year, Mr. Vasili Billis, Chief Executive Officer of SYSTEMS SUNLIGHT SA, stated the following: “In 2017, SUNLIGHT Group achieved a significant increase in turnover and improved further its operating profitability. Through the implementation of its investment plan towards capacity increases and operating cost reduction, the Company further strengthened its position in the international markets. The particular investment plan is under progress and boosts our expectations for an even stronger penetration into the large markets in Europe and America with regard to (traction) battery products.”

During the year 2017, SYSTEMS SUNLIGHT SA, member of Olympia Group, further strengthened its extrovert strategy that has been put into place since the Company’s establishment and up until today. In this context, the Company enlarged the geographic dispersion of its customer base and grew the sales volume of batteries for industrial uses. At the same time via the implementation of its investment plan and the generation of economies of scale, within the year 2017, SUNLIGHT continued to improve its performance in terms of respond rates, flexibility, quality of products and offered cost, a fact that further strengthened its competitive position in the international markets where it is currently active. It is noted that over 90% of the turnover of the Company is generated abroad and mainly in the countries of European Union (EU). At the same time, the Group’s strategic plan calls for the penetration into new geographic as well as new product markets.

The contribution made by subsidiary company of the Group, SUNLIGHT RECYCLING, was also significant. Having increased its production capacity, mainly during the 2nd half of the year, and by rationalizing the mix of raw materials utilized, the Company improved its production rates and consequently its operating profitability. Being in the second year of its full operation, the recycling unit of SUNLIGHT RECYCLING in Komotini, Greece, covers the needs in terms of lead of the Group’s battery production plant by over 50%.

In more specific terms, the Group’s Turnover in FY 2017 amounted to € 194.5 million compared to € 153.9 million in FY 2016, posting a growth of 26% compared to the previous year. The above development was mainly attributed to the higher market shares captured and to the stronger sales volume in batteries for industrial uses, and to a second degree it was due to the higher prices of lead. On the parent Company level, turnover reached € 222.8 million compared to € 168.4 million last year (increase by 32%).

Earnings before interest, taxes, depreciation and amortization (EBITDA): On the Group level, EBITDA stood at € 22.0 million (€ 21.5 million on Company level) posting a growth of 28% (25% on Company level), as result of the gross profitability as well as of the containment and the lower, on proportional basis, increase of distribution and administrative expenses. EBITDA margin stood at 11.3% versus 11.2% in 2016.

Earnings / (losses) before taxes: Given the above and in combination with the contraction of financial expenses, as result of the deleveraging recorded in the Statement of Financial Position, the significant decrease of the cost of debt and the improvement in working capital, the Group generated earnings before taxes of € 8.4 million, versus € 2.3 million last year. Respectively for the Company, earnings before taxes amounted to € 9.1 million (€ 5.3 million in 2016).

The net debt position of the Group settled at € 67.1 million compared to € 75 million on 31/12/2016. It is noted that in June 2017, the Company issued a bond loan amounting to € 50 million of which € 27 million were utilized for the repayment of existing debt obligations of the Group. Shareholders’ funds accounted for € 38.1 million compared to € 31.4 million in 2016.

The prospects of the Group are viewed as especially favorable, given the global economic growth which in turn implies higher needs in the transportation and storage of merchandise as well as given the trend observed in many developed markets across the globe (EU, North America and Eastern Asia) with regard to promotion of “clean” sources of energy and the more efficient utilization of such sources.

Furthermore by utilizing the bond loan of € 50 million, the Group possesses now the necessary resources in order to materialize its plans for a cautious development strategy, both on the production level by continuing to implement a plan towards higher production capacity and cost reduction in the two production plants, as well as on the commercial level, by further strengthening its presence in existing geographic markets and by penetrating new ones. Finally, the Group it will continue allocating resources and place the development of technologically advanced energy storage products and solutions as top priority, making SUNLIGHT one of the most innovative suppliers of batteries on international level.

Finally, apart from its financial performance, Sunlight Group makes constant efforts in order to improve its social footprint, not only in the areas of environmental protection and the promotion of the circular economy, issues of Hygiene and Safety at work, but also towards the creation of an environment characterized by transparency and integrity. In the context of the above, the Group undertook the “GreenMission” initiative with the aim to generate greater awareness and sensitivity with regard to the recycling of lead batteries.