August 30 (SeeNews) - The consolidated net profit of Bulgarian sugar producer Zaharni Zavodi [BUL:3Z9] fell by an annual 61.5% to 256,000 levs ($153,000/130,900 euro) in the first half of 2018, as its sales revenue lost 16.8%, the company said on Thursday.
Zaharni Zavodi generated consolidated sales of 54.8 million levs in the review period, down from 65.8 million levs, figures from the company's interim financial statement show.
Total operating expenses declined to 54.6 million levs in the first six months of the year compared to 65.5 million levs in the corresponding period of 2017, as expenses for materials fell to 16.7 million levs from 47.5 million levs the year before.
Zaharni Zavodi's earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 9.4% to 3.5 million levs.
Zaharni Zavodi consolidates the results of four wholly owned subsidiaries - Zahar, Zaharni Zavodi Trade, RMZ Gorna Oryahovitsa and Thermal power plant Gorna Oryahovitsa.
Earlier this month, the company successfully placed convertible seven-year bonds worth 18.8 million levs, or 94% of all bonds offered for subscription. The bonds carry an annual coupon of 3% with payments due semi-annually.
In its prospectus, Zaharni Zavodi said it intends to use the proceeds from the bond issue to repay outstanding debt. The company said at the time that if it places all offered bonds it will repay 17.1 million levs of debt owed to BST-Bulgaria, 1.4 million levs to Ritam-4-TB and 758,800 levs to GU - Faradei.
GU - Faradei owns a 25.58% stake in Zaharni Zavodi, while Ritam-4-TB holds 25.55%. GU - Faradei is also a shareholder in BST-Bulgaria.
Zaharni Zavodi operates several production facilities – a sugar refinery, a confectionery plant and an ethyl alcohol distillery.
(1 euro = 1.95583 levs)