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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

6 January

 2017 starts with good news concerning the registration and further development of our product Tabex 

31 January

Medica AD and Sopharma AD signed a contract for transformation through merger

27 February

Sopharma AD announces that the Competition Council of The Republic of Moldova allows the acquisition of over 51% of RAP Pharma International SRL by Sopharma AD

20 March

Sopharma AD and Medica AD signed an annex to the Contract for transformation through merger reflecting the comments by the FSC

18 April

Sopharma AD acquired 51% of the Moldova pharmaceutical distributor RAP Pharma International

25 April

The Financial Supervision Commission approved the Contract for transformation through merger and the additional annex to it between Sopharma AD and Medica AD

2 June

AGM of Sopharma AD

21 July

Sopharma AD acquired 75% from the capital of the successful start-up for development and registration of food additives Aromania

9 August

The transformation through merger of Medica AD in Sopharma AD has been registered with the Commercial Register

14 September

Unipharm AD and Sopharma AD signed a contract for transformation through merger

3 November

Annual Meeting with Investors

8 December

Sopharma AD received two notifications from Rompharm Company OOD for the sale of shares from the capital of the company

20 December

Sopharma AD received an approval from the FSC of the contract for transformation through merger of Unipharm AD in Sopharma AD


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