March 6 (SeeNews) - Bulgarian organic products maker and distributor Smart Organic [BUL:SO] grew by an annual 45% its consolidated sales revenue for the first two months of 2023, entirely due to organic growth, it said.
Sales revenue amounted to 5.14 million levs ($2.8 million/2.6 million euro) in January and 5.25 million levs in February, the company said in a stock exchange filing last week.
Machinery and equipment upgrades worth 6 million levs are underway, along with a 7 million levs construction of a new production site at the Bozhurishte industrial zone near Sofia, the company added.
Smart Organic also clarified that a decrease in its standalone net profit for 2022, as announced last week, was chiefly due to a 2 million levs one-off dividend paid by its subsidiary Zelen Bio, formerly known as Roo Brands, in 2021.
"The company's standalone revenue growth is 18%, and despite a difficult year in terms of cost increases, we managed to limit the decrease in our EBITDA margin to only 0.2% (from 21.1% to 20.9%), as the expenses growth was largely offset by achieved economies of scale from additional growth as well as by new products launched on the market that have greater added value," Smart Organic noted. The company added that the consolidated sales growth of over 20% booked in 2022 and a largely maintained profit margin remain a solid premise for growth over the next two years.
As at 1505 CET on Monday, shares in Smart Organic were trading 0.79% lower at 12.60 levs on the Bulgarian Stock Exchange.
(1 euro = 1.95583 levs)