Albena cons Q4’13 net loss widens as revenue shrinks (NEUTRAL)

Albena reported BGN 7.8m consolidated net loss in Q4’13 up by BGN 2.2m YoY and 5.6% higher than our estimate. Operating revenue shrank by 63% YoY (vs. our expectations for a 64.9% YoY decline), mostly due to falling revenue from sold goods. Q4’12 top line was boosted also by BGN 2m one-off revenue. Expenses decreased slower than revenue (-30% YoY) mainly due to cut in costs of hired services. Hence, EBITDA came in red territory with BGN 3.3m. Net financial expenses increased by BGN 15% on the year to BGN 879k. 2013 consolidated net profit came at BGN 14.1m (down 10% YoY), 2.8% less than we expected. Revenue growth (+1% YoY) and OPEX growth (+6.4% YoY) were in line with our expectations, however depreciation charges fell behind the projected. Materials and compensation costs fuelled the increase in OPEX after rising by an equal 12.9% YoY. Thus, EBIT margin was down to 16.9% from 19.4% in 2012. With flat financial expenses, the net margin shrank to 13.8% from 15.5% in 2012.