SMART ORGANIC SALES GROW 16%

12 August 2024

Stock Exchange Stats

BSE Weekly Gainers & Losers

Market Overview (05 August – 09 August)

The main Bulgarian index SOFIX decreased this week by 1.35% to 854.78 points. The broad index BGBX40 decreased this week by 1.04% to 168.28 points and BGREIT increased this week to 193.74 points, up by 0.43%.

Corporate News

Smart Organic (SO) – announced 16% growth in revenues for H1 2024. They experienced some setbacks in starting the new location in Bozhurishte due to the remaining works on the municipality electricity infrastructure. Due to this, the revised sales growth expectations for 2024 are for 10-15%.

Telelink Business Services (TBS) announced that pursuant to the decision on the GSM on 19.06.2024, they had started a procedure for share buyback in the amount of 25,000 shares representing 0.2% of the shareholder capital of the company.

M+S Hydraulic (MSH) announced that they will be constructing a new production facility of 18,425 sqm in Kazanlak on a land plot of 34,413 sqm. The total expected investment for land, plant and equipment is BGN 45mln and is expected to be completed in 3 years.

Eurohold Bulgaria (EUBG) – published their Q1 2024 consolidated reports, which show EBITDA more than tripling to over BGN 108mln despite the 17.9% YoY decrease in revenues. The result was due to improved management in its energy and insurance business lines. Profit before taxes reached BGN 49mln and Net Income was BGN 45mln.

Eleven Capital (11C) – announced that their investment Businessmap OOD, the software developer for project management tools operating under the brand Kambanize, had distributed dividend to the shareholders and Eleven Capital had received BGN 240,829.64.

Shelly Group (SLYG) – announced they will be having a webcast/meeting with the management on 14.08.2024 on 09.00 CEST (10.00 EEST) with regards to the unaudited consolidated results for H1 2024. Head management will be discussing their performance and describing future plans, interested investors can attend on https://montegaconnect.de/event/g03sobpibzjbu49hkxgpu1yjob1otwiy

BREF (BREF) – announced they had signed a new tenant agreement with Ontotext AD for their Synergy Tower location. The leased area is 1322.44sqm for a period of 5 yrs. The total occupancy in Synergy Tower is now 58.99%.

Economic News

• Retail sales rose by 4.3% YoY in June. Sales increased for food, beverages & tobacco (9.7% vs 9.4% in May) and non-food products (5.7% vs 1%). Additionally, sales declined at a softer pace for automotive fuel in specialized stores (-11.1% vs -13.5%).
• Industrial production shrank 5.2% YoY in June, slipping further from a downwardly revised 4.9% fall in the previous month. This marked the sharpest decline since March, as output continued to fall for mining & quarrying (-17% vs -15.9% in May) and tumbled sharply for electricity, gas, steam & air-conditioning supply (-17.2% vs 18.4%). Conversely, output decreased at a softer pace for manufacturing (-2.4% vs -6.4%).

Ivaylo Valchev
Equity Analyst
Tel.: +359 2 937 9862
e-mail: valchev@sis.bg

Svetozar Abrashev
Senior Managing Partner
Tel.: +359 2 937 9869
e-mail: abrashev@sis.bg

Sofia International Securities
Sofia 1000,
140 G. S. Rakovski Str.
Tel.: + 359 2 937 98 65
e-mail: info@sis.bg

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