18.12.2020

The Board of Directors announces an address to the shareholders and investors of Stara Planina Hold Plc and its subsidiaries, informing about 2021 anticipations. In 2020 the annual sales of the enterprises from the group will reach approximately BGN 198million. This would lead to an 11.8% drop compared to 2019.

As a result of the vigorous anti-crisis measures taken by the management we envisage that the 2020 financial results of the group will remain close to the 2019 levels emphasizing that a positive element in the financial state of the group is the low external indebtedness.

The 2020 net profit of Stara Planina Hold Plc will exceed BGN 5 million which gives us confidence that for the 24th consecutive year part of the profit will be distributed in the form of dividends to the shareholders of the holding.

The Board of Directors of Stara Planina Hold Plc expects the slow growth in the consolidated sales revenues observed in the last months of 2020 to continue also in 2021 as in the first half of the year we expect that the growth will be 5.4%. At the same time we are more optimistic in terms of sales in the second half when we expect a 8.8 % year-on-year growth rate. Considering these metrics, in 2021 we expect that the sales revenues in the group will reach BGN 211 million. Despite the looming sales growth it is possible for the financial results to decline by 12-14 % which is due to the outpacing growth of labor costs while maintaining the number of employees

The history of Stara Planina Hold Plc shows that we have experience in overcoming crises and mitigating the resultant risks. Therefore, in 2021 again our primary task will 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 terms and wider product ranges in line with the specific customers’ demands.

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Consolidated Sales (BGN'm)