13.12.2019

The Board of Directors announces an address to the shareholders and investors of Stara Planina Hold Plc and its subsidiaries, informing about 2020 anticipations. In 2019 the annual sales of the enterprises from the group will reach approximately BGN 222 million. This would lead to an 8.6% drop compared to 2018.

Considering the expected weak last quarter, we estimate that the 2019 financial performance of the group will see a drop of 19%. This may affect the future income from dividends in the parent company.

We project the 2019 net profit of Stara Planina Hold Plc to reach BGN 6.4 million which gives us confidence that for a 23rd consecutive year a part of it will be distributed as a dividend to the shareholders of the holding. Depending on the results from the initial months of the next year, in the middle of March Stara Planina Hold Plc will announce its proposal to distribute part of the 2019 profit of the companies as a dividend.

The Board of Directors of Stara Planina Hold Plc expects for the drop in the consolidated income from sales to continue also in the first half of 2020 with the projected drop expected to reach over 10% compared to the first half of 2019. At the same time we are optimistic in terms of sales in the second half when we expect a 5.5% year-on-year growth rate. Considering these metrics, in 2020 we expect to see the income from sales in the group reach BGN 215 million. Despite the looming annual 3 percent drop in sales, we expect a bigger dip in the financial performance in the order of 7-8 percent.

The history of Stara Planina Hold Plc shows that we have experience in overcoming a crisis and mitigating the resultant risks. Therefore, in 2020 our primary task will again be to retain the major markets and to widen our presence in the new markets. This will require us to offer good prices, high quality, short delivery times and wider product ranges in line with the specific customers’ demands.

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Consolidated Sales (BGN'm)