The audit bumped up Albena’s profit by BGN 0.3m on minor adjustments (NEUTRAL)

02.04.2024 Source: Albena; FFBH

Albena's audit of the individual financial statements led to some minor changes. 2023 revenue was revised downwards to BGN 89.2m (+2.9% YoY; -2.3% compared to the preliminary). At the same time, OPEX was adjusted downwards (BGN 70.5m, compared to BGN 73.0m in the preliminary) as some write-downs were reversed. The revisions are likely connected to an extent as the bulk of the reversed write-downs may’ve been recorded as revenue in the preliminary. The geographical breakdown of revenue revealed that Romania (BGN 21.5m; +72.9% YoY) is close to overtaking the domestic market (BGN 23.7m; +1.7% YoY) as a primary revenue generator. Germany is occupying the third place with sales of BGN 11.6m (+68.6% YoY). Further down the income statement, the most notable change was reduction of the tax expense by BGN 0.2m to BGN 97k. As a result, net income for the year came at BGN 1.7m (EPS of BGN 0.41), compared to BGN 1.0m in 2022 and BGN 1.4m in the preliminary. The auditor noted that current liabilities (BGN 23.6m) are considerably higher than current assets (BGN 17.4m), which may be a source of risk. However, management is confident that the operations of the company will not be disrupted by this.