INDEXES SLIP DESPITE THE GOOD QUARTER RESULTS

Market Overview (August 30^th – September 3^rd)  

The main Bulgarian index SOFIX decreased by 2.06% this week, down to 560.71 points. The broad index BGBX40 decreased by 0.71% to 128.13 points. BGREIT also decreased this trading week to 161.39 points, down by 2.12%.

Corporate News                                                      

Sopharma Group (SFA) reports growth of 11.8% YoY to BGN 759mln in revenue for the consolidated first half of 2021. The Net profit of the group has increased by 81%, with a growing Net Margin from 2.8% last year to 4.5% this one. According to IQVIA, the company has retained its 3% market share in the Bulgarian pharmacy industry at the end of H1 2021.

Allterco AD (A4L) released its consolidated financial results for the first half calendar year of 2021. The revenue of the group has increased by 54.42% YoY to BGN 28.4mln. The growth was chiefly driven by the 83% increase in sales of smart devices, while the revenue from telecom services has decreased by 41%. The EPS has grown 2 times compared to H1 2020.

Doverie United Holding AD (DUH) published the consolidated financial statements for H1. The Net Interest Income has increased by 17.8% YoY to BGN 33.6mln while the net income from fees and commissions has grown by 22.7% YoY to BGN 18.44mln. The EPS has soared by 76.5% YoY for H1.

Eurohold Bulgaria (EUBG) reports growth of 20% YoY to BGN 923mln in revenue and 15% YoY to BGN 58mln for the consolidated first half of 2021. However, mainly due to increased “outside services” expense, the net losses have stayed still of (-3mln) as H1 2020.

Economic News                                                       

Producer Prices in Bulgaria grew 13% YoY in June, which comes stable compared to last month’s change but way above the forecasted number of 9.5%. Furthermore, the Business Confidence decreased to 19.9 in July, compared to 21.3 a month ago. This is due to more reserved industrial entrepreneurs’ assessments and expectations about the business situation of the enterprises. Finally, the Tourist Arrivals in July was 1,234,507, representing an increase of 75% from a month ago.

Active COVID-19 cases in Bulgaria are on an increasing trend with a 7-day MA of 1,440 cases. The active cases at the end of the week are 27,333. The total number of fully vaccinated people so far is 1,090mln, which is 15.5% of the population in Bulgaria.

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