Sopharma’s Q2’25 consolidated sales increased 29.1% YoY to BGN 631.6m, coming 1% below our expectations. Sales of own products added 14.1% YoY while sales of goods grew by 30.9% YoY and accounted for 86.9% of sales. The EBITDA improved even further by surging 51.8% YoY to BGN 48.4m with margin at 7.7%. The gross margin on the distribution and retail segment improved to 13.7% vs 12.2% in Q2’24. On the cost side, it is worth noting that cost of materials increased by only 0.3% YoY. Net financial cost increased 63.2% Yo, mainly on growth of interest cost. The profitability received significant boost from the income from associated companies, which surged by 117.5% YoY to BGN 11.5m, most of it coming from Doverie. The consolidated net income after minority interest came to BGN 30.1m (EPS of BGN 0.18), +86.3% YoY and 1.1% above our estimate. H1’25 sales grew 27.4% YoY to BGN 1.3bn, EBITDA increased 36.5% YoY to BGN 106.2m with similar dynamics as in Q2’25 alone and net income surged 53.5% YoY to BGN 70.4m (EPS of BGN 0.41). Note that EPS are calculated with the number of outstanding shares as of 30 June. Current number of shares is 3 times higher as a result of capital increase with own funds. The non-cash working capital rose by BGN 205.9m since the beginning of the year, mainly on higher level of trade receivables as well as lower payables. IB debt also grew by 144.9m YoY to BGN 603.4m (IB debt to equity of 65.1%) while CAPEX for the period came to BGN 45.2m.