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Bulgaria's Zagorka grows net profit slightly in 2018, revenue drops

Author Mario Tanev
Bulgaria's Zagorka grows net profit slightly in 2018, revenue drops Photo: Zagorka / All rights reserved.

SOFIA (Bulgaria), July 2 (SeeNews) - Bulgarian brewer Zagorka, a unit of Dutch-based Heineken International, said that its net profit edged up to 23.1 million levs ($13.3 million/11.8 million euro) in 2018 from 22.5 million levs the year before.

The company's sales revenue fell to 140.6 million levs last year from 150.5 million levs in 2017, Zagorka said in a commercial register filing.

In terms of volume, however, Zagorka's sales added 0.2% to 1.495 million hectolitres. 

Bulgaria's beer market shrank by 1% in 2018, Zagorka said, quoting data from British information, data and measurement company Nielsen. In 2019, Zagorka expects the Bulgarian beer market to remain unchanged compared to 2018.

The company's expenses for materials rose to 60.3 million levs in 2018 from 58.7 million levs in 2017, while expenses for hired services dropped to 30.6 million levs from 40.5 million levs. Personnel costs remained unchanged at 15.5 million levs.

Zagorka's assets increased to 104.1 million levs at the end of 2018 from 101.0 million levs a year earlier. The company's current ratio improved slightly to 0.36 at the end of last year from 0.35 at the end of 2017.  

Zagorka's capital expenditure amounted to 10.4 million levs in 2018. In 2019, the company intends to invest mainly in new refrigerated showcases, draft beer systems, and the maintenance and modernisation of its production base in Stara Zagora.

(1 euro = 1.95583 levs)