Smart Organic – 2024 annual consolidated review

Accelerating Growth and Market Leadership Through Strategic Investments and Innovation

2024 annual consolidated results

• In 2024, Smart Organic AD successfully executed a capital increase by issuing 1,030,999 new shares, each with an issue price of EUR 9.72. This initiative effectively raised EUR 10 million in capital.
• As a natural progression of the Group’s strategic growth objectives, commitment to enhanced transparency, and aspiration to uphold superior corporate governance standards, the company resolved to transition to a public company status. Concurrently, it initiated the relocation of its shares’ trading from the BEAM Market to the regulated market of the Bulgarian Stock Exchange (BSE), specifically within the Standard Segment.
• Throughout 2023 and 2024, Smart Organic AD was engaged in the intensive construction of a new production and warehousing facility in the Bozhurishte Industrial Zone, near Sofia. This state-of-the-art complex spans 6,000 sq.m. of built-up area (BUP) and houses two dedicated production lines for chocolate products, tahini, and raw bars, significantly enhancing the company’s manufacturing capacity. In December 2024, Act 16 (Certificate of Occupancy) was officially signed, with initial production commencing in early 2025, followed by a phased ramp-up of operations.
• Concurrently, in both 2023 and 2024, Smart Organic executed various strategic investments in new production machinery and installations to further augment the capacity of its existing manufacturing lines. Additionally, the ERP system acquired in 2023 was successfully implemented and became operational in 2024.
• In 2024, Smart Organic’s operational revenue demonstrated robust growth, increasing by 13.95% to reach EUR 47.2 The export share for 2024 stood at 66.7%, a slight decrease from 70.7% in the previous year.
• Exports to the European Union exhibited a significant rise of 19.2%, reaching EUR 28.3 mln. Conversely, exports to third countries experienced a decline of 42.5%, totaling EUR 3.2 mln. Meanwhile, revenue generated within Bulgaria registered a substantial increase of 29.6%, reaching BGN 15.7 mln.
• Operating expenses increased by 13.8% to EUR 39.4 mln. A notable development within the cost structure is the significant rise in external services expenses by 43.3% to EUR 6.1 mln, alongside a 24.6% increase in personnel costs, reaching EUR 8.1 mln.
• Within external services expenses, the most substantial growth was observed in transportation costs and courier services, with increases of 39.5% and 76.1% respectively. Furthermore, expenditures for advertising services and commercial intermediation and commissions also saw notable rises of 41.2% and 48.7%, respectively. These trends indicate a strategic move towards aggressive and targeted sales expansion.
• As a result, EBITDA increased by 17.7% to EUR 9.7 mln, and net profit rose by 18.4% to EUR 7.3 mln.
• Total assets saw a substantial increase of 66%, reaching EUR 53.3 mln. This growth was driven by a 94.4% expansion in current assets and a 38.1% rise in non-current assets.
• The increase in non-current assets has been elaborated upon previously. The significant growth in current assets is primarily attributable to a 143.8% surge in cash and cash equivalents, reaching EUR 5.2 mln, and a remarkable 1,147.4% increase in short-term financial assets, totaling BGN 5.6 mln. Additionally, trade receivables grew by 72.8% and inventories by 34.4%, contributing to this expansion.
• Regarding the liability structure, total liabilities expanded by 59.1%. Non-current liabilities notably increased by 72.5% to EUR 7.4 mln, while current liabilities rose by 46.4% to EUR 6.8 mln.
• The more pronounced increase in current assets (94.4%) compared to that of current liabilities (46.4%) led to an improvement in the current ratio, rising from 3.4 to 4.6. Furthermore, the growth in cash and cash equivalents elevated the cash ratio to 0.8.
• On December 2, 2024, Smart Organic AD announced significant developmental successes. A key accomplishment was their first delivery to DM stores, following the successful listing of their “dmBio” brand in the chain’s permanent assortment. The company also reported substantial growth for its Naughty Nuts brand, reaching €2.6 mln by the end of November, with year-end expectations of €3 mln. Furthermore, the zelen.bg platform saw a 26% increase in sales by November 30, with a remarkable 100% growth for the period from July 1 to November 30. A significant achievement for the company was securing agreements for new listings in 2025 for a newly launched product with major retail chains such as Rossmann, EDEKA, and REWE (central listing), among others, valued at over €6 mln.
• Last year, Smart Organic successfully initiated its first deliveries to Rossmann, a prominent drugstore chain with over 2,200 stores across Germany. While the “Zelen” store on “G. S. Rakovski” Street was closed due to negative financial performance, the company observed positive development for its Naughty Nuts brand in Germany, specifically within REWE and EDEKA, where it has launched products in the spreads, pralines, and bars categories. Furthermore, Smart Organic secured new confirmed product listings to be produced for dm Germany’s “dmBio” brand. The online store naughtynuts.de continues its strong sales growth. The company’s Romanian subsidiary demonstrated robust performance with over 180% growth for the first half of the year, driven by new listings in Kaufland Romania. In late July, Smart Organic introduced a new innovative product – ready-to-eat protein soups under its bett’r brand, and simultaneously launched a new European online store, bettr-food.com, operating from its German warehouse.
• 13.02.2025 Smart Organic has become the official distributor of the German cosmetic brand Dr. Hauschka in Bulgaria, expanding its portfolio beyond organic food and beverages to include certified natural premium cosmetics. This partnership aims to provide Bulgarian consumers with easier access to Dr. Hauschka’s high-quality, ecologically sustainable products, which are produced without synthetic preservatives, mineral oils, silicones, and PEGs, sourcing raw materials from biodynamic farms globally. This strategic move aligns with Smart Organic’s mission to offer brands of proven quality, with verified ingredients, produced under nature-friendly conditions.

Full report can be accessed here.