Audit ups Speedy’s (0SP BU) unconsolidated net income by 20% to BGN 7.7m, according to the Company’s audited unconsolidated FY2016 financial statements published at the end of March 2017. Audited net income stands at BGN 7.7m, up 20% vs. preliminary announced result of BGN 6.4m.

The latter is due mostly on 24% lower depreciation expense after the audit from preliminary BGN 9.5m to BGN 7.2m. Accordingly, this may affect expected DPS as Speedy usually distributes a min.50% of unconsolidated profits.

Decline for Monbat net profit

Audit lowers Monbat’s (5MB BU) standalone net profit by 4% to BGN 18.1m, the Company’s audited FY2016 unconsolidated financial statements published end of March. The decline in the bottom line from preliminary announced results is due to 18%higher other expenses related to BGN 500k receivables write off.

Lower net profit for Sopharma Trading

The audit lowered Sopharma Trading’s net profit (SO5 BU) by 3% vs preliminary released data to BGN 13.3m. Lower top line and lower administrative expenses but higher sales expenses and higher financial revenues have resulted in the changes.

Sopharma Trading also posts 5% y/y rise in Jan-Feb’17 sales, bottom line flat, the Company announced in a regular monthly bulletin. Jan-Feb’17 sales reach BGN 107m while earning before taxes stood at BGN 3.1m.

Sopharma’s net profit up after audit

Audit ups Sopharma’s (3JR BU) standalone net profit by 1.2% to BGN 37.7m, according to the Company’s audited FY2016 unconsolidated financial statements published end of March. The bottom line increase comes from lower external service expenses as approved by the auditors.

Meanwhile Sopharma consolidation underway

CPC gives green light on Sopharma (3JR BU) acquiring control in Doverie United Holding (5DOV BU), according to Competition Protection Commission decision. Sopharma already owns directly slightly above 30% of the holding’s capital while related Sopharma shareholders have additional stakes to slightly below 50% of the total capital. The CPC node is only preliminary move. Sopharma may acquire additional shares through the stock exchange and if it passes a 33% threshold it will extend a tender offer. No immediate details on Sopharma’s plans.

However, the Company has synergies with Doverie’s two health insurance funds and a hospital. Sophama also acquired Doverie’s bandages producer Medica (5MA BU) and syringes producer Momina Krepost and plans to merge them. The rest of Doverie’s portfolio is in real estate, retail, textile and other industries. Doverie United Holding is among the biggest exprivatization funds in Bulgaria with 150,000 shareholders from the mass privatization in the late 1990s.

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