Sopharma Trading Q1’25 stand-alone net income grows 57.1% YoY, surpassing our expectations by 66% (POSITIVE)

Q1’25 unconsolidated sales of Sopharma Trading increased 9.5% YoY to BGN 384.9m, which is 2.3% above our forecast. Gross profit grew 34.7% YoY to BGN 30.9m with margin improving to 8.0% from 6.5% in Q1’24. EBITDA margin improved with similar percentage and the EBITDA rose 45.6% YoY to BGN 22.2m. Below the EBITDA line there was not significant dynamics and net income surged 57.1% YoY to BGN 16.6m (EPS of BGN 0.48), significantly beating our expectations by 66%. The balance sheet data reveals that non-cash working capital increased by BGN 33.2m YtD, due to higher receivables. Loans to related parties also increased by BGN 4.7m. IB debt added BGN 20m in the quarter with debt to equity ratio increasing to 75% compared to 71.6% at end-2024.