Sopharma

Leading generic pharma company Sopharma (3JR BU) will not distribute second interim dividend for FY2018, yearly DPS stays BGN 0.05, according to the Company’s GSM invitation scheduled for 7th June, pending approval by the Commercial Register.

Last year Sopharma became one of the two companies on the Bulgarian Stock Exchange to introduce interim dividends. For H1’18 it distributed BGN 6.3m of the interim net profit or BGN 0.05 DPS. With no proposal for second interim dividend, this brings FY2018 dividend yield to 1.42% at current quotes.

At the GSM, shareholders will also vote the distribution of 1% of the FY2018 net profit to the CEO and 2% of the net profit to the senior management.

In addition, shareholders will vote a proposal for Sopharma to become a co-debtor of a subsidiary in relation to a deal falling under art.114, subparagraphs 1, point 2. The latter concerns acquisition deals requiring shareholders’ vote.

The FY2018 DPS of BGN 0.05 is twice lower than ELANA Trading analysts’ projection of BGN 0.10.

Latest financial results

Sopharma xpanded top line by 16% y/y in Mar’19, Q1’19 revenues dropped 2% y/y, according to a regular monthly filing by the Company. In Mar’19, Sopharma marked a substantial improvement in sales, generating 11% y/y growth in local market and 22% y/y growth in export markets.

During Q1’19, the Company registered 2% y/y decline in sales due to an 18% y/y drop in local sales and 11% y/y increase in exports.

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