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Bulgarian Sopharma's H1 cons net profit falls despite rise in revenue

Author Mario Tanev
Bulgarian Sopharma's H1 cons net profit falls despite rise in revenue Sopharma/ All rights reserved

SOFIA (Bulgaria), August 29 (SeeNews) - The consolidated net profit of Bulgarian drug maker Sopharma [BUL:3JR] fell to 20.7 million levs ($12.3 million/10.6 million euro) in the first half of 2018 from 28.9 million levs in the same period of last year, despite a rise in revenue, the company said on Wednesday.

Sopharma's total operating revenue grew to 577.7 million levs in the review period from 479.9 million levs the year before, according to figures from the drug maker's interim financial statement.

Sales revenue grew 21% year-on-year to 569.8 million levs.

The drug maker generated 65% of its sales revenue on the Bulgarian market, 33% from exports to Europe and 2% from exports to other countries. Sales in Bulgaria grew by an annual 10%, while exports to Europe increased 56% on the year.

Sopharma held a 3.5% market share in terms of sales revenue in Bulgaria, according to data from the company. Its major competitors in Bulgaria during the review period were Novartis with a 7% market share, Roche - 6%, Actavis - 5% and Glaxosmithkline - 4%.

The company's operating expenses increased to 551.7 million levs in the first six months of the year from 447 million levs in the corresponding period of 2017, as cost of goods sold rose by an annual 31% to 400.4 million levs, or 73% of all operating expenses.

The drug manufacturer's capital expenditure fell 6.2% year-on-year to 10.1 million levs in the first half of 2018.

Sopharma consolidates the results of over 20 companies in Bulgaria and a further 26 units outside the country, located in Belarus, Serbia, Moldova, Kazakhstan, Ukraine, Latvia and Poland.

The group's number of employees averaged 5,100 during the first six months of the year.

Sopharma's biggest shareholder at the end of June was Donev Investment Holdings with a 25.29% stake, followed by Telecomplect Invest and Rompharm Company, with 20.41% and 6.03%, respectively. Sopharma held own shares equal to a 6.78% stake in the company at the end of June.

As at 12:23 CET on Wednesday, Sopharma shares traded 0.50% higher at 4.02 levs on the Bulgarian Stock Exchange.

(1 euro = 1.95583 levs)