Sopharma Trading Q2’24 unconsolidated sales added 8.7% YoY to BGN 330.9m while gross profit increased 13.6% YoY to BGN 21.5m improving the margin to 6.5% from 6.2% in the comparable period of 2023. EBITDA increased 16.3% YoY to BGN 13.8m due to slower growth of materials and compensations. Below the EBITDA line, net financial cost came lower by 28.8% YoY while D&A cost added 3.4% YoY. As a result, net income grew 28.4% YoY to BGN 9.2m (EPS of BGN 0.27), in line with our expectations. H1’24 sales increased 10.3% YoY while net income improved 15.9% YoY to BGN 19.8m (EPS of BGN 0.58) on decline of cost of materials, contained cost of compensations and lower net financial cost. The last one is on the back of higher interest income as the company enlarged its loan portfolio to the subsidiaries. The balance sheet data reveals that non-cash working capital increased by BGN 15.2m YtD, both on higher receivables and inventories. Loans to related parties also increased by BGN 31.1m financed with banking debt, which grew BGN 39.3m YtD.