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Annual Review 2018

Letter to the shareholders

Mr. DonevDear shareholders, dear friends,

It's been a year of review - on our 85th anniversary, we looked back to enjoy our successes, to thank the people with whome we've achieved them and celebrate with everyone we want to share our future with. Thank you for sharing!

We are proud to have been among the pioneers with two major initiatives - we have distributed shares to all our employees according to their length of service and contribution to the company's successes and distributed the first interim dividend. We have received support from our shareholders for both initiatives, which has always been an important indication for us confirming that we are doing the right thing.

Sopharma Group has gone through a difficult path of integration of the newly acquired companies Lekovit in Serbia and the pharmacies chain PharmaStore in Bulgaria, as well as of the merged company Unipharm.

After the exceptionally strong 2017, we kept the growth rates of consolidated sales revenue, but we slowed down on net profit. In achieving synergy with newly acquired and merged companies, we expect optimization of the operating and net results over the next two years and ratios closer to those of 2017.

We hope for your support and 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 1,179,143 1,017,105 15.9%
Deprecation and amortization (EBITDA) 72,278 85,944 16.7%
Operating profit 39,143 55,836 29.9%
Net profit 30,637 45,772 -33.1%

BGN '000 
BGN '000 
Non-current asset 480,688 468,369 2.6%
Current asset 529,915 512,364 3.4%
Equity 508,529 503,110 1.1%
Non-current liabilities 69,175 80,061 -13.6%
Current liabilities 432,899 397,562 8.9%

EBITDA/sales revenue 6.1% 8.4%
Operating profit/Sales revenue 3.3% 5.5%
Net profit/Sales revenue 2.6% 4.5%
Borrowed capital/Equity 0.99 0.95
Net debt/EBITDA, annualized 4.15x 3.02x

Significant Events

23 February

 Extraordinary General Meeting of Shareholders took place 

15 June

General Meeting of Shareholders was held regularly and a decision was taken to distribute bonus shares among all employees on the occasion of the 85th anniversary of Sopharma AD

1 August

An Extraordinary General Meeting of the Shareholders was held and a decision was taken for the transformation by merger of Unipharm AD into Sopharma AD

14 September

An Extraordinary General Meeting of the Shareholders was held and a decision was made for the first payment of an interim dividend

23 October

More than 10,000 employees, partners and friends celebrated 85th anniversary of Sopharma AD in Arena Armeec, Sofia

16 November

An Annual Investor Relations Meeting was held with the management of Sopharma AD and Sopharma Trading AD and a visit to the Regional Distribution Center of Sopharma Trading AD Automated with the KNAPP System


New Development and Products


New Products

with marketing authorizations for the period January - December 2017. Marketing authorizations for three new products have been issued.

Amlodipine tablets 5 mg

Amlodipine tablets 10 mg

Doporizone Oinment


Expected in 2018

Three to six new products are expected to be introduced by the end of the 2018.



Over 30 production processes and technologies are in the processes of transfer, validation and optimization. Pharmaceutical development is carried out of 4 new medicinal products and one active substance.





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