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Annual Review 2019

Letter to the shareholders

Mr. Donev

Let us wish we are all healthy in 2020!

The management of “Sopharma” AD is determined to re-examine the Company's strategy in the context of sustainable development. As a zero-carbon company, we turn our eyes to the broader footprint that our business and our employees leave in the environment. With the construction of the new plant for solid dosage forms in Sofia, we ceased the use of organic substances in film-coated tablets, thus eliminating the need for energy-intensive and expensive water treatment and waste-water pollution.

Interested current and future investors are eagerly awaiting the implementation of the single financial reporting system of the long-awaited EP and Council Taxonomy, which will allow private capital to be invested exclusively in economic activities that are truly sustainable.

Our economic footprint has grown in key indicators such as dividends paid, taxes paid and corporate tax, staff payments, etc.

In December 2019, we realized a 16% increase in sales compared to the same month of the previous year, and for the whole year the sales revenue increased by 9% compared to 2018, which is mainly due to a 15% increase in export sales to the main foreign markets. 2019 EBITDA increased with 43.5% and net profit with 175.4% as a result of the investment of our associate “Doverie Obedinen Holding” AD in Moldindconbank through one of its subsidiaries.

We believe that all the steps we have taken will guarantee us another successful year.

Thank you 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 1,281,587 1,179,143 8.7%
Deprecation and amortization (EBITDA) 103,696 72,278 43,5%
Operating profit 59,692 39,143 52.5%
Net profit 84,359 30.637 175.4%

BGN '000 
BGN '000 
Non-current asset 626,172 480,688 30.3%
Current asset 549,100 529,915 3.6%
Equity 575,772 508,529 13.2%
Non-current liabilities 115,448 69,175 66.9%
Current liabilities 484,052 432,899 11.8%

EBITDA/sales revenue 8.1% 6.1%
Operating profit/Sales revenue 4.7% 3.3%
Net profit/Sales revenue 6.6% 2.6%
Borrowed capital/Equity 1.04 0.99
Net debt/EBITDA, annualized 3.68х 4.15х

Significant Events

2 January

The merger of OOO “Med-dent”, Belarus with BOOO “SpetsApharmatsiya”, Belarus was registered by merging the assets and liabilities of the two companies. 

7 June

General Meeting of Shareholders of "Sopharma" AD was held regularly.

12 November

With the participation of His Excellency Evgueni Stoytchev, the Ambassador of the Republic of Bulgaria in Moldova, “Sopharma” AD celebrated the opening of a new warehouse and administrative building in Kishinev with a total area of 5000 sq. m.

13 December

The Extraordinary General Meeting of Shareholders of "Sopharma" AD was held and took decision to pay a 6-month dividend to shareholders at the amount of BGN 0.05. /five stotinki/ per share.


New Development and Products


New Products

New product in OTC segment: Vitamin C Sopharma 1000 mg. effervescent tablets.

New prescription product: Urimax Duo in the field of urology, which is the first generic in its category.


Expected in 2020

Three to five new products are expected to be introduced by the end of the 2020.



Over 27 production processes and technologies are in the processes of transfer, validation and optimization. Pharmaceutical development is carried out of 17 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