Sopharma Trading’s audit with minor changes to 2021 consolidated financials (NEUTRAL)

29.04.2022 Source: Sopharma Trading; FFBH

The audit of 2021 consolidated financials resulted in minor changes compared to preliminary announcement. Net income was slightly increased by 0.7% due to lower tax provisions. 2021 revenue increased 15.3% YoY to BGN 1 344m while gross profit was up by 35.1% YoY to BGN 150.3m with 1.6 p.p. margin improvement. EBITDA added 12.2% YoY due to rising compensations cost (+41.1% YoY, mainly on the acquisition of 150 pharmacies on 1 October 2020) as well as growing other OPEX (+111.8% YoY, mainly impairments and write-offs). Depreciation cost also surged 42.5% due to the acquisition of the pharmacies and the net income declined by 29.9% YoY to BGN 8m (EPS of BGN 0.23).