Q3’12 unconsolidated revenues of Sopharma added 1.2% YoY to BGN 54.2m as exports increased 7.9% to BGN 33.5m while domestic sales fell 5.7% to BGN 14.4m. Russia was the worst performing market in Q3 with sales falling 9.1% while Ukraine and Poland grew 29.3% and 334.3% respectively. Operating expenses for the 3-m period fell 4% and consequently EBITDA improved 22.7% to BGN 10.4m. Net profit for Q3’12 alone was down by 9.4% to BGN 10.3m due to the lower financial income (most dividends from subsidiaries were booked in Q2’12 and Q3’11).
9m’12 sales increased 2.2% YoY to BGN 159m. Exports increased 7.4% to BGN 117.3m while domestic sales fell 10.2% to BGN 41.7m. Total revenues were up by 2.7% to BGN 175.9m. The main export market Russia was down by 2.5% to BGN 57.6m while the next significant export market Ukraine rose 10.3% to BGN 28.5m. The positive surprises came from the Polish market which rose 289% to BGN 6.3m after the company changed its distribution channel in Poland in 2011 and Caucasus & Central Asia region which grew by 19.1% to BGN 14.6m.
Operating expenses increased 5.8% due to the 7.9% increase of cost of materials and the 9.5% increase of compensation cost (the BGN 1.2m management bonuses for 2011 were booked in 2012). 9m EBITDA declined 6.6% to BGN 39.9m with margin at 22.7% compared to 25% in 9m’11. The 15.7% higher dividend income and 12.7% lower interest expense limited the decline of the net profit to 2.7% to BGN 35.2m.
On the balance sheet short-term receivables increased by 36m YTD to BGN 209.5m mostly as a result of the BGN 22.6m increase in trade receivables from related parties and 6m increase of extended loans to related parties. PPE added BGN 38.7m as CAPEX for the period amounted to BGN 45.7m (mostly in the new tablet plant). Investments in subsidiaries and held for sale also increased (by BGN 8.3m cumulative) as the company participated in a couple of capital increases during the period. IB debt increased by BGN 33.3m to BGN 205.1m due to the execution of the investment program of the company (the new tablet plant).