Wellis in Talks With Potential Minority Equity Partners
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Hungarian hot tub maker Wellis Hungary said it is negotiating with potential minority equity partners in an investor presentation posted on the website of the Budapest Stock Exchange, where its corporate bonds are listed.
Wellis also said it is negotiating with its current lenders and potential new financiers. Wellis acknowledged that it was "forced off the planned business track" because of "global political and economic turmoil" last year.
It responded by downsizing operations and executing strict cost control and net working capital management while rolling out a new, energy-efficient production line. Wellis noted that it paid annual interest on its corporate bonds, issued two years earlier, on February 26.
The investor presentation shows that, even as net sales rose to HUF 50.7 billion from HUF 38.3 bln, Wellis Group had a consolidated pre-tax loss of HUF 900 million last year (after booking a pre-tax profit of HUF 3.7 bln in 2021).
For 2023, Wellis forecasts a pre-tax profit of HUF 4.8 bln on net sales of HUF 43.2 bln. Wellis had liabilities of HUF 32.5 bln at the end of last year, including long-term liabilities of HUF 11 bln.
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