Sopharma Trading (SO BU) books 9.3% y/y rise in sales in H1’17 to BGN 325m, gross profit up 10.2% y/y to BGN 24.4m, according to the Company’s interim standalone financial report as of June 30th, 2017. Net profit is up 11.2% y/y to BGN 7.2m.
Green light for Sopharma Trading acquisition in Serbia
In July 2017, the Commission for Protection of Competition in Serbia has approved Sopharma Trading to acquire the majority shares of Lekovit company – the fastest growing pharmaceutical wholesaler in Serbia in the last 3 years. The Regulator’s decision came a few weeks after the two companies announced their partnership intentions.
Under the arrangements the current shareholder in Lekovit, Dr. Dragan Petrovic, will keep the minority shares and will continue contributing to the further development of the company on the CEO position.
The partnership between Sopharma Trading and Lekovit aims at building a strong nationwide player in healthcare in Serbia. The official closing of the deal is still due.
3.45% dividend yield from 2016 profits
Sopharma Trading (SO5 BU) shareholders approved BGN 0.30 gross dividend per share, according to the Company’s protocol from its regular shareholders meeting, held June 2nd, 2017. This yields 3.45% at current market quotes with an ex-dividend date on June 15th, 2017.
Expansion and funding
Earlier this year Sopharma Trading scheduled extraordinary general meeting to get debt financing approved – fueling expansion plans.
Shareholders approved new debt financing from various banks for a total of approx. BGN 54m to be used for acquisitions in Bulgaria and Serbia.
On 16 March 2017 Sopharma Trading announced that the company has reached an agreement and arrangement for the acquisition of Bulgarian PharmaStore pharmacies operations, with the intention of subsequently integrating them in the SOpharmacy store network.