3Q 2020 Financial Notification of the company has submitted to the Financial Supervision Commission.

Financial Report

Through the interim report:

We anticipate the consolidated net sales revenues during the nine months to reach BGN 146 million, which outlines a decline of 16.6%. In the fourth quarter we expect sales growth compared to the third quarter by about 16-17%, with net revenues will reach BGN 50.4 million. With this forecast, we anticipate sales in the second half of the year to reach about BGN 94 million compared to BGN 101.8 million in the second half of 2019. Thus, the expected decline in the second half of the year will be about 7.8% on an annual basis, and for the whole year it will be about 12-13%.

In the weaker second half of the year, we anticipate the financial result of the group for 2020 to continue its decline, and this has a negative impact on dividend income in the parent company. Our expectations are for 21% decrease in the annual net profit of the holding.

Despite the positive development of the business climate in the fourth quarter of this year, so far we cannot commit to predicting the beginning of the outcome of the current crisis. The pace of economic recovery depends largely on the speed, scale and type of distribution of Kovid-19 in the coming quarters. At the moment, we expect a rather U-shaped recovery, in which the economy cannot push itself off the crisis bottom immediately, but moves close to it for a period of several consecutive quarters.

More specific parameters will be published in mid-December after the adoption of the business plans of the companies in the group.