Sopharma

Sopharma’s (SFA) 2021 total consolidated revenue increased 14.1% y/y to BGN 1.66 b. The growth in sales of finished products in Bulgaria is 9.4% y/y. According to IQVIA, Sopharma takes the 1st spot (10.5% share) on the domestic market in quantity of finished products sold and 8th position (2.84% share) in terms of value of finished products sold.

Exports-wise, sales of finished products in Ukraine jumped 7.1% y/y; 25.5% y/y up in Baltic States; 47.8% y/y up in Serbia; 27.8% y/y up in Uzbekistan; and up by 3% y/y in the Caucasus region, Belarus and Moldova. In Russia, however, sales of finished products decreased by 7.4% y/y, while the decrease in Kazakhstan was 4.4%, 0.5% y/y down in Poland and 19.1% y/y down in Vietnam.

Sopharma’s consolidated expenses grew at a slower pace compared to revenue, 10% y/y up to BGN 1.573 b. mostly on higher personnel costs and depreciation expenses following the acquisition of new pharmacies by the end of 2020. Net financial expenses stood at BGN 5.1 m. due to the net loss from exchange rate differences on foreign currency loans and lease agreements as a results of the depreciation of the Belarusian ruble and its effect on the debt exposure in euros and dollars of the Group subsidiaries in Belarus.

Net income in 2021 marked an impressive c.4x y/y growth at BGN 93.7 m. translating into 0.73 EPS to shareholders. Meanwhile profitability more than tripled with net margin adding 4.08 p.p. y/y to 5.84%. Currently the Company trades at P/E of 5.84

2022 results

Meanwhile Sopharma reports strong top line growth in 2022 so far with Feb’22 unconsolidated revenue rising 71% y/y following a staggering 72% y/y jump in exports and 69% y/y Bulgarian sales increase. The combined Jan-Feb 2022 revenue grew 62% y/y on 148% y/y surge of domestic sales and 22% y/y higher exports.

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