Sopharma : Consolidated financial report according to IFRS as at 30 June 2021

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SOPHARMA GROUP
Board of Directors:	Ognian Donev, PhD
Vessela Stoeva
Bissera Lazarova
Alexandаr Tchaoushev
Ivan Badinski
Executive Director:	Ognian Donev, PhD
Finance Director:	Boris Borisov
Preparer:	Lyudmila Bondzhova
Head of Legal Department:	Alexandar Yotov
Address of Management:	Sofia
16, Iliensko Shousse Str.
Lawyers:	Law Firm "Gachev, Baleva, Partners"
Ventsislav Stoev
Stefan Yovkov
Servicing Banks:	Raiffeisenbank (Bulgaria) EAD
DSK Bank EAD
Eurobank Bulgaria AD
ING Bank N.V.
Unicredit Bulbank AD
Societe Generale Expressbank AD
Auditor:	Baker Tilly Klitou and Partners OOD

SCI

SOPHARMA GROUP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six-month period, ending on 30 June 2021
Notes	1 January - 30 June 2021	1 January- 30 Jun 2020
BGN'000	BGN'000
Revenue from contracts with customers	3	759,044	678,997
Other operating income / (losses), net	4	6,615	5,237
Changes in inventories of finished goods and work in progress	3,143	5,808
Raw materials and consumables used	5	(39,093)	(48,348)
Hired services expense	6	(33,378)	(37,798)
Employee benefits expense	7	(74,341)	(65,979)
Depreciation and amortization expense	14,15	(26,929)	(21,765)
Carrying amount of goods sold	(557,930)	(486,250)
Other operating expenses	8	(3,234)	(3,156)
Profit from operations	33,897	26,746
Finance income	10	4,283	2,459
Finance costs	11	(6,753)	(9,447)
Finance income /(costs), net	(2,470)	(6,988)
Profit from associates and joint ventures, net	12	4,579	2,543
Печалба/(Загуба) от придобиване и освобождаване на и от дъщерни дружества	-	-
Profit from acquisition and disposal of subsidiaries	1,249	-
Profit before tax	37,255	22,301
Income tax expense	(3,399)	(3,590)
Net profit for the period	33,856	18,711
Other components of comprehensive income:
Items that will not be reclassified to profit or loss:
Subsequent revaluations of property, plant and equipment	(69)	-
Net change in the fair value of other long-term equity investments	13	(82)	(619)
(151)	(619)
Items that may be reclassified to profit or loss:
Exchange differences on translating foreign operations	(691)	(1,611)
(691)	(1,611)
Other comprehensive income for the period, net of tax	13	(842)	(2,230)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	33,014	16,481
Net profit for the year attributable to:
Equity holders of the parent	32,192	20,619
Non-controlling interests	1,664	(1,908)
Total comprehensive income for the year attributable to:
Equity holders of the parent	31,370	19,075
Non-controlling interests	1,644	(2,594)
Basic net profit per share	BGN	0.26	0.16
The notes on pages 5 to 147 are an integral part of the present consolidated financial statement.
Executive Director:
Ognian Donev, PhD
Finance Director:
Boris Borisov
Preparer:
Lyudmila Bondzhova

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SFP

SOPHARMA GROUP
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
for the six-month period, ending on 30 June 2021
Notes	30 June 2021 BGN'000	31 December 2020 BGN'000
ASSETS
Non-current assets
Property, plant and equipment	14	381,490	395,872
Intangible assets	15	55,940	58,272
Goodwill	15	13,360	13,269
Investment properties	16	10,437	11,691
Investments in associated and joint ventures	17	68,475	62,811
Other long - term equity investments	18	16,424	14,294
Long-term receivables from related parties	19	60,604	59,726
Other long-term receivables	20	12,068	11,951
Deferred tax assets	169	2,049
618,967	629,935
Current assets
Inventories	21	285,025	287,569
Commercial receivables	22	246,627	250,707
Receivables from related parties	23	8,692	6,682
Assets held for sale	80	- 0
Other short-term receivables and assets	24	44,735	41,926
Cash and cash equivalents	25	20,668	25,293
605,827	612,177
TOTAL ASSETS	1,224,794	1,242,112
EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
Share capital	134,798	134,798
Reserves	58,993	57,701
Retained earnings	390,594	360,770
26	584,385	553,269
Non-controlling interests	12,785	13,326
TOTAL EQUITY	26	597,170	566,595
LIABILITIES
Non-current liabilities
Long-term bank loans	27	50,414	34,567
Deferred tax liabilities	6,478	7,937
Long-term liabilities to related parties	28	8,849	8,783
Long-term payables to personnel	29	7,405	7,339
Lease liabilities	30	46,132	49,593
Government grants	31	7,875	10,422
Other non-current liabilities	32	12,498	12,425
139,651	131,066
Current liabilities
Short-term bank loans	33	215,820	255,281
Short-term part of long-term bank loans	27	12,484	31,172
Trade payables	34	172,919	164,919
Payables to related parties	35	2,183	2,367
Factoring agreement liabilities	36	30,924	36,591
Short-term part of leasing liabilities	30	16,635	17,951
Payables to personnel and social secutiry	37	18,429	17,996
Tax payables	38	6,956	6,590
Other current liabilities	39	11,623	11,584
487,973	544,451
TOTAL LIABILITIES	627,624	675,517
TOTAL EQUITY AND LIABILITIES	1,224,794	1,242,112
The notes on pages 5 to 147 are an integral part of the present consolidated financial statement.
Executive Director:
Ognian Donev, PhD
Finance Director:
Boris Borisov
Preparer:
Lyudmila Bondzhova

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SCF

SOPHARMA GROUP
CONSOLIDATED STATEMENT OF CASH FLOWS
for the six-month period, ending on 30 June 2021
Notes	1 January - 30 June 2021	1 January - 30 June 2020
BGN'000	BGN'000
Cash flows from operating activities
Revenue from contracts with customers	775,978	631,981
Payments to suppliers	(708,413)	(639,453)
Payments for wages and social security	(72,108)	(63,221)
Taxes paid (profit tax excluded)	(38,223)	(35,669)
Taxes refunded (profit tax excluded)	4,244	7,677
Income taxes paid	(4,440)	(4,718)
Income taxes refunded	8	-
Interest and bank charges paid on working capital loans	(3,868)	(4,951)
Exchange rate differences, net	(175)	(922)
Other proceeds/(payments), net	(164)	(729)
Net cash flows used in operating activities	(47,161)	(110,005)
Cash flows from investing activities
Purchase of property, plant and equipment	(11,007)	(12,911)
Proceeds from sale of property, plant and equipment	193	657
Purchase of investment properties	-	(379)
Purchases of intangible assets	675	-
Purchases of equity investments	(2,214)	(826)
Proceeds from sale of equity investments	(2,004)	(4,658)
Proceeds from dividends on equity investments	30	35
Payments for the acquisition of subsidiaries, net of cash received	183	-
Proceeds from the exemption of subsidiaries, net of cash provided	455	-
Purchases of investments in associates and joint ventures	(52)	-
Proceeds from the sale of investments in associates and joint ventures	196	1
Proceeds/(payments) on transactions with non-controlling interests, net	(277)	(1,595)
Loans granted to related parties	(2,660)	(1,617)
Repaid loans, granted to related parties	1,500	37,152
Loans granted to other parties	(186)	(1,023)
Repaid loans, granted to other parties	28	578
Interest received on loans and deposits	121	1,524
Interest received on loans and deposits	-	-
Net cash flows used in investing activities	(15,019)	16,938
Cash flows from financial activities
Proceeds from short-term bank loans (including increases in overdrafts)	191	8,611
Repayment of short-term bank loans (including decreases in overdrafts)	(40,344)	(16,814)
Proceeds from long-term bank loans	12,939	13,987
Repayment of long-term bank loans	(12,553)	(8,465)
Loans received from other parties	87	141
Repayment of loans to other parties	(83)	(215)
Proceeds under factoring agreement	109,479	102,822
Interest and charges paid under factoring agreement	(292)	(170)
Interest and charges paid under investment purpose loans	(1,308)	(697)
Lease payments	(10,608)	(7,419)
Proceeds from non-controlling interest in the issue of equity in subsidiaries	-	41
Purchases of treasury shares	-	(262)
Proceeds from sales of treasury shares	-	548
Dividends paid	(12)	(6,302)
Government grants	61	849
Net cash flows from financing activities	57,557	86,655
Net (decrease)/ increase in cash and cash equivalents	(4,623)	(6,412)
Cash and cash equivalents at 1 January	25,139	27,362
Cash and cash equivalents at 30 June	25	20,516	20,950
The notes on pages 5 to 147 are an integral part of the present consolidated financial statement.
Executive Director:
Ognian Donev, PhD
Finance Director:
Boris Borisov
Preparer:
Lyudmila Bondzhova

&P

SEQ

SOPHARMA GROUP
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six-month period, ending on 30 June 2021
Attributable to owners of the parent	Non-controlling	Total
Notes	Share capital	Treasury shares	Statutory reserves	Revaluation reserve - property, plant and equipment	Reserve from financial assets at fair value through other comprehensive income	Translation of foreign operations reserve	Retained earnings	Total
BGN'000	BGN'000	BGN'000	BGN'000	BGN'000	BGN'000	BGN'000	BGN'000	BGN'000	BGN'000
Balance at 1 January 2019	26	134,798	(34,142)	59,297	28,871	2,873	4,078	360,656	556,431	19,341	575,772
Changes in equity for 2019
Effect of treasury shares acquisition	- 0	380	- 0	- 0	- 0	- 0	(94)	286	- 0	286
*acquisition of treasury shares	- 0	(262)	- 0	- 0	- 0	- 0	- 0	(262)	- 0	(262)
* sale of treasury shares	- 0	642	- 0	- 0	- 0	- 0	(94)	548	- 0	548
Effects of restructuring	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Distribution of profit for:	- 0	- 0	4,038	- 0	- 0	- 0	- 0	- 0	- 0	- 0	(12,836)	- 0	(8,798)	- 0	- 0	- 0	(8,798)
* statutory reserves	- 0	- 0	4,038	- 0	- 0	- 0	(4,038)	- 0	- 0	- 0
* dividends	- 0	- 0	- 0	- 0	- 0	- 0	(8,798)	(8,798)	- 0	(8,798)
Effects assumed by non-controlling interests on:	- 0	- 0	- 0	- 0	- 0	- 0	(202)	ERROR:#REF!	(202)	(872)	ERROR:#REF!	(1,074)
* acquisition/(disposal) of subsidiaries	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	2,091	2,091
* distribution of dividends	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	(2,799)	(2,799)
* issue of equity in subsidiaries	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
* increase in the interest in subsidiaries	- 0	- 0	- 0	- 0	- 0	- 0	(278)	(278)	(167)	(445)
* decrease in the interest in subsidiaries	- 0	- 0	- 0	- 0	- 0	- 0	76	76	3	79
Total comprehensive income for the year, including:	- 0	- 0	- 0	- 0	(619)	- 0	(925)	20,619	19,075	(2,594)	16,481
* net profit for the year	- 0	- 0	- 0	- 0	- 0	- 0	20,619	20,619	(1,908)	18,711
* other comprehensive income, net of taxes	- 0	- 0	- 0	- 0	(619)	(925)	- 0	(1,544)	(686)	(2,230)
- 0
Transfer to retained earnings	- 0	- 0	- 0	(189)	77	- 0	112	- 0	- 0	- 0
Balance at 30 June 2020	26	134,798	- 0	(33,762)	ERROR:#REF!	63,335	ERROR:#REF!	28,682	ERROR:#REF!	2,331	ERROR:#REF!	3,153	ERROR:#REF!	368,255	ERROR:#REF!	566,792	15,875	ERROR:#REF!	582,667
Balance at 1 January 2021	134,798	(33,656)	63,335	28,425	2,282	(2,685)	360,770	553,269	13,326	566,595
Changes in equity for 2021
Effect of treasury shares acquisition	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Distribution of profit for:	- 0	- 0	2,866	- 0	- 0	- 0	- 0	- 0	- 0	- 0	(2,866)	- 0	- 0	- 0	- 0	- 0	- 0
* statutory reserves	- 0	- 0	2,866	- 0	- 0	- 0	(2,866)	- 0	- 0	- 0
* dividends	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Effects assumed by non-controlling interests on:	- 0	- 0	- 0	- 0	- 0	- 0	(254)	(254)	(2,185)	(2,439)
* acquisition of subsidiaries	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	(1,891)	(1,891)
* distribution of dividends	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
* issue of equity in subsidiaries	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
* increase in the interest in subsidiaries	- 0	- 0	- 0	- 0	- 0	- 0	(254)	(254)	(294)	(548)
* decrease in the interest in subsidiaries	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Total comprehensive income for the year, including:	- 0	- 0	- 0	(53)	(82)	- 0	(687)	- 0	32,192	- 0	31,370	- 0	1,644	- 0	33,014
* net profit for the year	- 0	- 0	- 0	- 0	- 0	- 0	32,192	32,192	1,664	33,856
* other comprehensive income, net of taxes	- 0	- 0	- 0	(53)	(82)	(687)	- 0	(822)	(20)	(842)
- 0
Transfer to retained earnings	- 0	- 0	- 0	(753)	1	- 0	752	- 0	- 0
- 0	- 0	- 0	- 0
Balance at 30 June 2021	26	134,798	(33,656)	66,201	27,619	2,201	(3,372)	390,594	ERROR:#REF!	584,385	12,785	ERROR:#REF!	597,170
The notes on pages 5 to 147 are an integral part of the present consolidated financial statement.
Executive Director:
Ognian Donev, PhD
Finance Director:
Boris Borisov
Preparer:
Lyudmila Bondzhova

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