Annual review 2021
2021: Steady progress
on our journey
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Who we are

Sopharma Group is one of the leading European producers and distributors of health related products. We are committed to providing efficient treatment for millions of people around the globe.

45
countries of presence
190+
medicinal products in the portfolio
11
groups of medical devices
8
manufacturing plants in Bulgaria, conforming with EU GMP

Key brands

Carsil
Treating gastroenterological disorders in a natural way
Tempalgin
Providing quick pain relief
Tabex
Helping thousands of people quit smoking and live a longer and healthier life

Letter to the shareholders

We have continued to build the foundations for a sustainable future by improving the organization of work and changing the structure of our teams in the strategic areas. We invited international experts with established experience to work together with us to affirm the already well-known face of Sopharma as a reliable and trusted partner. We are already seeing results and this encourages us to take the next step forward towards a new and modern model of business that goes hand in hand with the nearly 90 years of history that has been created with hard work and consistency by all those before us.

The results achieved in 2021 bring us peace of mind as we see an emerging recovery trend in most of our markets. Particularly remarkable is the performance of the local market with a growth of 14%. Despite the overall decrease in revenue by 3.18%, EBITDA increased by 4.24% and operating profit by 8.69% as a result of the optimization of a number of business processes and improving the performance of our main products.

We have set ambitious goals that build on experience, sustainable operations and create shareholder value for the long term.

Our mission

We play an active role in raising people’s living standards by providing reliable and easy access to the most important health-related products.

To ensure the fulfillment of our mission, we do the following:

1.Investing in development

The Group focuses its development activities mainly on generic products. Development projects are focused on new formulations and composition or physical properties (such as capsule form or tablet form) of a product in order to adapt it to current market needs.

Main 2021 results
  • 18 authorizations for the use of medicinal products for new destinations received
  • 45 medicinal products got renewed market authorizations
  • 6 new projects are underway
Read more on our R&D
2.Increasing the efficiency of distribution

The distribution segment in the Group is carried out by Sopharma Trading AD in Bulgaria and local subsidiaries, representative offices and partners abroad such as Sopharma Warsaw and Sopharma Kazakhstan. Besides our own brands, Sopharma Trading AD is the only distributor on the Bulgarian market of particular pharmaceutical products of several leading international pharmaceutical and other companies in the field of healthcare such as Amgen, Astra Zeneca, GE Healthcare, Johnson and Johnson, Abbot Diagnostics, Hartmann, Novartis and Novo Nordisk.

Main 2021 results
  • 400+ partners and 3,500+ clients throughout the world
  • 15,000+ products in the portfolio
  • 22.15% share of the Bulgarian market
Read more on our distribution system
3.Maintaining an active and effective dialogue with all stakeholders

The policy of Sopharma Group expresses the views and commitments for the future development and improvement of the business by maintaining high quality products and services, protecting the environment, ensuring healthy and safe working conditions, security of information and responsible corporate behavior of companies to stakeholders, including investors, partners, and end users.

Main 2021 results
  • 400+ partners and 3,500+ clients throughout the world
  • 5,500+ employees
Read more on our corporate social responsibility
4.Taking part in significant projects and programs related to the environmental protection

Sopharma Group maintains its commitments in compliance with the national legislation in the sphere of the preservation of the environment, including GHG emissions, waste management, water preservation. Our offices are located in smart buildings with energy saving systems, rainwater use, smart heating/cooling control, etc.

Main 2021 results
  • Using renewable energy sources
  • Zero pollution of wastewater
  • Less than 50 tons of emissions per year
Read more on our environmental protection

Strong financial results

Sales revenues of the Group increased by 11.4% in 2021 due to fast post-pandemics recovery and efficiency measures. Net profit increased by 263%.

Main 2021 results
  • Sales revenues BGN 1 603.3 million
  • EBITDA BGN 116.7 million
  • Net profit BGN 91.7 million

The SOpharmacy chain to grow

The Group launched the rebranding of the recently acquired pharmacies from the Ceiba and Sanita chains, which will adopt the physical appearance of the SOpharmacy brand. The three chains have started joint activities as of April 2021, comprising a total of 209 pharmacies across 46 cities in Bulgaria. Sopharma Trading completed the acquisition of the 150 Ceiba and Sanita pharmacies in October 2020.

209 pharmacies
46 cities

Solid stock performance

In 2021 Sopharma formed 76.35% of the trade volume on the Premium segment of the Bulgarian Stock Exchange. The market capitalization of the companies in the Preimum segment increased with 15.44%, whereas Sopharma’s outperformed them by a market cap increase of 39.64%.