Sopharma Trading registered Q3’23 unconsolidated sales of BGN 303.3m, up by 11.4% YoY and in line with the preliminary announcement. Total revenue also grew with the same percentage to BGN 308.1m. Gross profit, though, declined by 3.9% YoY to BGN 18m with margin at 6%, down from 6.9% in the comparable period of 2022. As a result EBITDA came 8.4% YoY lower at BGN 10.4m, or 16% below our expectations. Below the EBITDA line, net financial income came to BGN 4.2m vs net financial cost of BGN 1m in Q3’22, which was a result of the BGN 5.7m dividends from subsidiaries, the first in the company’s history. This helped net income to grow by 50.3% YoY to BGN 11m (EPS of BGN 0.32), 43.2% above our expectations. 9m’23 revenue increased 16.7% YoY while gross profit added 7.6% YoY. The lower growth of compensation cost partly saved the EBITDA (+11.2% YoY). Bottom line annual growth came to 28.1% with EPS of BGN 0.82. The balance sheet data reveals that non-cash working capital added BGN 27.7m YtD, mainly on higher increase of receivables and inventories vs payables while financial debt added BGN 11.2m YtD.