Sopharma

Leading generic drugs producer Sopharma (3JR BU) booked 50.3% y/y rise in EBITDA to BGN 32m in H1 2017 on 18% y/y surge in sales, according to the Company’s interim standalone financial statement as of June 30th 2017.

Sopharma sales in Russia and Ukraine recover

Sopharma H1 sales advanced in line with preliminary estimates with 18.2% y/y to BGN 93.3m on surge in sales to Russia and Ukraine. With 32% and 34% y/y, respectively. Domestic market added 1% y/y to BGN 33m in sales while other markets, mostly Caucasus and Central Asia, rose 24% y/y to BGN 11.5m.

Operating profitability advanced considerably as top line surged surpassed advance in materials, labor and external services costs. EBIT surged 72.6% y/y to BGN 24.7m. With no major one off vs an year ago, Sopharma’s bottom line came at BGN 31.6m, down 6.3% y/y.

In Q2’16, Sopharma sold its Ivancic and Son subsidiary in Serbia which led to surge in H1’16’s bottom line.

Advancing Russian market contribution

Sopharma posts 18% y/y top line expansion also for Jan-July 2017, according to preliminary monthly data published by the Company. Exports advance 30% y/y, driven by Russia mostly, while the domestic market adds 2% y/y.

Since the start of 2017 Sopharma’s sales are undergoing considerable recovery due to normalizing conditions in Russia and renewed growth in Ukraine.

2.5% dividend yield for Sopharma shareholders

At the annual shareholders meeting on June 2nd, 2017, Sopharma shareholders approved BGN 0.10 dividend per share from 2016 profits. It yields 2.5% at current market quotes. Payout has started July 24th.

The dividends in the last 10 years were as following:

• 2015 profits – BGN 0,07 per share
• 2013, 2012 and 2011 profits – BGN 0,07 per share
• 2010 profits – BGN 0,085 per share
• 2007 profits – BGN 0,05
• 2006 profits – BGN 0,1

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