Romania’s Biofarm grows net profit 9% in 2023

The company's income from sales inched up by an annual 1% to 280.3 million lei last year, it said in a financial report filed with the Bucharest Stock Exchange on Wednesday.

"During 2023, an important contribution to Biofarm's performance was generated by the increase in sales of active brands in the most important CHC categories from a potential point of view – cold & flu and pain management," the company noted.

Operating expenses edged down to 205.1 million lei in 2023 from 207.3 million lei in the previous year.

Total assets increased to 493.8 million lei at the end of 2023 from 466.5 million lei a year prior, whereas total liabilities decreased to 59.4 million lei from 86.5 million lei.

During 2023, Biofarm launched 11 new products. Over-the-counter drugs generated 62% of the company’s turnover, while food supplements and prescription drugs accounted for 33% and 5%, respectively. The development of new products is seen as one of the company’s future growth engines.

Last year, the company's products were exported to seven countries, with exports representing about 3% of total net sales.

Founded in 1921, Biofarm was listed on the Bucharest Stock Exchange in 2005. The company owns two drug factories in Bucharest as well as a product testing and development unit. Its portfolio tallies over 100 products covering therapeutic areas in the consumer healthcare division - digestive and metabolic, respiratory and ENT, cardiovascular and circulatory, nervous system, vitamins).

Local investment funds SIF Muntenia and Lion Capital hold 51.58% and 36.74% of Biofarm, respectively. The remainder is in free float on the BVB.

Biofarm's shares traded 0.24% lower at 0.82 lei as at 1529 CET on Thursday.

(1 euro=4.9763 lei)