28.10.2019

3Q 2019 Financial Notification of the company has submitted to the Financial Supervision Commission.

Document:
Financial Report

Through the explanatory notes:

The first signals of recession in Western Europe have led to pessimism in the business sentiment of our key partners, resulting in a sharp drop in sales in the third quarter and especially in the fourth quarter of 2019. In the third quarter, we expect a decrease of 8.3% and in the fourth quarter a decline of 17.9% YoY in consolidated sales.

Sales in the second half of the year are unlikely to exceed BGN 100 million, which outlines a decrease of about 15%, which will lead to an annual decrease in the net sales revenues of about 9%. With the expected weak fourth quarter, we forecast the group's financial performance for 2019 to decline by 18%. This may affect future dividend payments to the parent company.

We expect this trend to continue in the coming year. More specific parameters will be published in the middle of December after the adoption of the business plans of the group companies. On October 24, a meeting was held with the management of the companies in the group of Stara Planina Hold Plc, which discussed the signals and threats of the oncoming crisis and discussed measures to reduce the risks arising from it.