Sopharma 2020 consolidated net income was increased by BGN 4.8m after the audit (NEUTRAL)

29.04.2021 Source: Sopharma; FFBH

2020 audited consolidated revenue of Sopharma was increased by 0.1% compared to preliminary figure while EBITDA was increased by 0.3%. The audit added 19.3% (BGN 4.8m) to net income due to higher income from Doverie. This, however, was a just a reclassification as loss with similar amount was recognised in other comprehensive income. 2020 consolidated sales increased 12.3% YoY due to the growth of third party products (+17.7%), while own products declined 6.4%. Total revenue was up 12.2%, while EBITDA added only 2% to BGN 86.4m as the gross margin on the distribution segment declined by 0.7 p.p. The BGN 14.3m net financial cost vs BGN 3m net financial income in the comparable period was mostly on profit from sale of subsidiaries and higher investment income in the comparable period as well as higher FX losses in 2020. Net income from Doverie was also down 86.6% (in 2019 Doverie booked a substantial profit from the acquisition of Moldindconbank) and played a major role in the net income drop of 65.7% to BGN 29.8m (EPS of BGN 0.24).