Sopharma Trading reported Q3’24 unconsolidated sales of BGN 329.2m, registering 8.5% YoY growth and 1.6% above our forecast. Gross profit increased 20.5% YoY to BGN 21.7m improving the margin to 6.6% from 5.9% in Q3’23. The EBITDA improved even more by 36% YoY to BGN 14.1m due to lower cost of materials and higher other income. Below the EBITDA line, net financial income came 78.5% lower YoY due to smaller dividend income from subsidiaries. As a result, net income remained flat YoY at BGN 11m (EPS of BGN 0.32), beating our expectations by 15.4%. 9m’24 sales and bottom line improved by 9.7% YoY as net income came to BGN 30.8m (EPS of BGN 0.90) with positive effects from other income and cost of materials and negative effects from hired services cost and lower dividend income. The balance sheet data reveals that non-cash working capital increased by BGN 16.2m YtD, both on higher receivables from related parties and inventories. Long-term loans to related parties also increased by BGN 31.8m financed with banking debt, which grew BGN 32m YtD. The report also disclosed the amount paid for 79% of the Belarussian company SOOO “Brititrade” – BGN 9.8m. Brititrade operations are focused on the wholesale of pharmaceutical products and medical devices. The company has also presence in the retail segment in Belarus operating 192 pharmacies.