Letter to the shareholders
Dear partners and friends,
I turn to you with gratitude for your support over the past year which was filled with uncertainty, but also with hope for the recovery to a normal business environment. We have continued to build the foundations for a sustainable future by improving the organization of work and changing the structure of our teams in the strategic areas. We invited international experts with established experience to work together with us to affirm the already well-known face of Sopharma as a reliable and trusted partner. We are already seeing results and this encourages us to take the next step forward towards a new and modern model of business that goes hand in hand with the nearly 90 years of history that has been created with hard work and consistency by all those before us.
The results achieved in 2021 bring us peace of mind as we see an emerging recovery trend in most of our markets. Particularly remarkable is the performance of the local market with a growth of 14%. Despite the overall decrease in revenue by 3.18%, EBITDA increased by 4.24% and operating profit by 8.69% as a result of the optimization of a number of business processes and improving the performance of our main products.
We have set ambitious goals that build on experience, sustainable operations and create shareholder value for the long term.
Thank you for your trust!
Ognian Donev, PhD
Chairman of the Board of Directors and Executive Director of "Sopharma" AD
Key Financial Results
|Operating profit/Sales revenue||4.0%||3.2%|
|Net profit/Sales revenue||5.7%||1.8%|
|Net debt/EBITDA, annualized||2,5x||4.3х|
On 10 March 2021 the Company sold 396,600 of its shares in the capital of “Momina krepost” AD, as a result of which the share of ownership of “Sopharma” AD became 37.46%. On 15 March 2021 an agreement was concluded between “Sopharma” AD and “Medical Consumables” OOD for a common policy in the management of Momina krepost” AD through joint exercise of voting rights.
At the Extraordinary General Meeting of Shareholders of “Sopharma” AD, held on 2 April 2021, the amendments to the Articles of Association of the Company proposed by the Board of Directors were adopted by a majority of 85.93% of the presented capital.
At its meeting the Board of Directors adopted a decision for issuance, under the conditions of initial public offering, of warrants as follows:Exercise value: BGN 4.13 Issuance price of one warrant: BGN 0.28 Number of warrants: 44,932,633 Minimum success threshold of the issue: 22,466,317 Term in which the right can be exercised: 3 years A merger of “Sopharma Trading Pharmaceuticals” D.o.o. in “Sopharma Trading” D.o.o. was registered, by merging the assets and liabilities of the two companies.
At the Regular General Meeting of Shareholders of “Sopharma” AD, held on 4 June 2021, the decisions proposed by the Board of Directors on the relevant items of the agenda were adopted.
On 3 August 2021 in accordance with Art. 25 of the Articles of Association of the Company, at its meeting the Board of Directors approves a prospectus for initial public offering of warrants with an issue price of BGN 0.28 and a total number of 44,932,633 warrants. The prospectus was submitted to the Financial Supervision Commission.
On 30 December 2021 the subscription for the public offering of the issue of warrants to the Company was successfully completed.
New Development and Products
Marketing Authorization was obtained for 18 new medicinal products.
Expected in 2022
Documentation has been submitted for the registration of 32 medicinal products to agencies of new destinations.
1 medicinal product and 2 food supplements were transferred.
20 medicinal products / active substances have been transferred/are in the process of transfer.
19 production processes / technologies have been validated/optimized.