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Annual Review 2015

Letter to the shareholders

Mr. DonevDear friends,

This year I would like to start my address to you with a wish for good health, persistence and steady withstanding of our principles and in our attempts to defend the values we believe in.

In spite of the fact we live in times of transition and generation clashes, taking care of the health, both our own and that our our loved ones is still a priority of the society.

This priority defines our dedication to our work, even though we face difficulties. The lack of political, economic and social stability on our main export markets predetermined to a certain extent our financial performance in 2015. We managed to maintain our position on the domestic market, but our total sales and EBITDA still decreased with 13.7%.

This effect was expected, although of course not wished for. Our success through out the year was mostly in our long-term strategic projects in the whole Group, including the sale of shares in our daughter company Extab, which we hope opens the doors for further work on the registration of our product Tabex on new markets with good outlooks.

Our daughter company Sopharma Trading Ad established itself on the Serbian market and is now building partnerships and business with baby steps. There are many examples. The year, which we enter now seemingly, will also offer lots of surprises. We believe we will face them in the most reasonable way and since we know by experience that an opportunity hides in every negative situation, we will try to use it.

Thank you for your trust.

Ognian Donev,PhD
Chairman of the Board of Directors and Executive Director of Sopharma AD

Key Financial Results

BGN '000
BGN '000
Sales revenues 874,984 840,517 4.1%
Earnings before interest , taxes,  62,766 67,824 -7.5%
deprecation and amortization (EBITDA) 36,440 40,024 -9.0%
Operating profit 22,600 24,117 -6.0%
Net profit 33,284 29,706 12.0%

BGN '000 
BGN '000 
Non-current asset 401,484 390,538 2.8%
Current asset 434,143 426,825 1.7%
Equity 457,640 431,637 6.0%
Non-current liabilities 62,492 65,030 -3.9%
Current liabilities 315,495 320,696 -1.6%

EBITDA/sales revenue 7.2% 8.1%
Operating profit/Sales revenue 4.2% 4.8%
net profit/Sales revenue 2.6% 2.9%
borrowed capital/Equity 0.83 0.89
Net debt/EBITDA, annualized 3.6x 3.7x

Significant Events

9 January

was held an Extraordinary General Meeting of Shareholder of Sopharma AD, which approved a decision for transformation of Sopharma AD trought the merger of Bulgarian Rose

17 March

Was concluded extrajudicial agreement Sopharma AD and a company supplier of the merged subsidiary.

9 May

On 19 May Sopharma AD finalized the sale of 75% of the capital of its subsidiary Extab Corporation. After closing of the transaction Sopgarma AD retains a 5% share in the capital of the company. As a result of the transaction, the Group disposed of its indirect participation in Extab Pharma Limited, UK - a subsidiary for 2014 and until 14 MAy 2015 through Extab Corporation, USA

16 July

Sopharma AD bought 240 000 shares of the capital on Medica AD. After the transaction the share of Sopharma AD in the capital of Medica AD reached 36.10%.


New Development and Products


New Products

with marketing authorizations for the period January - December 2015. Marketing authorizations for five new products have been issued.

Paracedol suspension

Tuspan syrup

Desloratidin solution

Finotem drops

Vederal drops


Expected in 2016

Three to five new products are expected to be introduced by the end of the 2016.



Over 25 production processes and technologies are in the processes of transfer, validation and optimization. Pharmaceutical development is carried out of over 20 new products for the Company.





Foreign markets
Efforts are focused on retaining and increasing the share of the company on the main markets (Russia, Ukraine and Poland) as well as establishing and extending presence in other countries (USA, Central and Est Europe and the Caucasian region).
New products
Consistently launch new pharmaceutical products on all the markets in which the Company sells its products in order to expand its product portfolio.
Organic growth
Grow organically in selected new markets to become a strong regional player with stable, geographically diversified revenues
Optimization of production capacity
Optimization of production capacity and construction of new ones
Intra Group integration
Further consolidate and integrate the Group to optimize its cost structure, control entirely the production chain and benefit from potential synergies