Sopharma : Notes to the consolidated financial report as at Q12026
INFORMATION ABOUT THE GROUP 5
SIGNIFICANT INFORMATION ON THE GROUP'S ACCOUNTING POLICIES 25
- REVENUE FROM CONTRACTS WITH CUSTOMERS 78
- OTHER OPERATING INCOME AND LOSSES 79
- EXPENSES 3A MATERIALS 80
- EXPENSES 3A FOR EXTERNAL SERVICES 80
- PERSONNEL EXPENSES 81
- OTHER OPERATING EXPENSES 81
- IMPAIRMENT OF ASSETS 82
- IMPAIRMENT OF NON-CURRENT ASSETS OUTSIDE THE SCOPE OF IFRS 9 82
- FINANCIAL INCOME 82
- FINANCIAL EXPENSES 83
- PROFITS AND LOSSES FROM ASSOCIATES AND JOINT VENTURES 83
- OTHER COMPREHENSIVE INCOME 84
- PROPERTY, PLANT, AND EQUIPMENT 85
- INTANGIBLE ASSETS 88
- INVESTMENT PROPERTIES 89
- INVESTMENTS IN ASSOCIATES AND JOINT VENTURES 92
- OTHER LONG-TERM CAPITAL INVESTMENTS 93
- LONG-TERM RECEIVABLES FROM AFFILIATED ENTITIES 95
- OTHER LONG-TERM RECEIVABLES 95
- INVENTORIES 96
- TRADE RECEIVABLES 96
- RECEIVABLES FROM AFFILIATED ENTITIES 99
- ASSETS HELD FOR SALE 101
- OTHER CURRENT RECEIVABLES AND ASSETS 102
- CASH AND CASH EQUIVALENTS 103
- EQUITY 104
- LONG-TERM BANK LOANS 106
- LONG-TERM LIABILITIES TO RELATED PARTIES 107
- LONG-TERM LIABILITIES TO EMPLOYEES 108
- LEASE LIABILITIES 109
- GOVERNMENT GRANTS 110
- LONG-TERM TAX LIABILITIES 110
- OTHER NON-CURRENT LIABILITIES 111
- SHORT-TERM BANK LOANS 111
- TRADE PAYABLES 113
- PAYABLES TO AFFILIATED ENTITIES 113
- LIABILITIES UNDER FACTORING AGREEMENTS 114
- LIABILITIES TO EMPLOYEES AND FOR SOCIAL SECURITY 114
- TAX LIABILITIES 115
- LIABILITIES HELD FOR SALE 117
- OTHER CURRENT LIABILITIES 118
- CONTINGENT LIABILITIES AND COMMITMENTS 118
- FINANCIAL RISK MANAGEMENT 120
- TRANSACTIONS WITH RELATED PARTIES 134
- EVENTS AFTER THE END OF THE REPORTING PERIOD 137
INFORMATION ABOUT THE GROUP
The Sopharma Group (the Group) comprises the parent company and its ninety (December 31, 2025: ninety) subsidiaries. In addition, the Group has investments in six associates and two joint ventures (December 31, 2025: six associates and two joint ventures).
Parent CompanySopharma AD (the parent company) is a commercial company registered in Bulgaria with its registered office and principal place of business at 16 Iliensko Shose St., Sofia. The company was entered in the Commercial Register on April 11, 2008, with UIC 831902088.
The company was incorporated on November 15, 1991, by Decision No. 1.1991 of the Sofia City
Court.
SubsidiariesAs of March 31, 2026, the subsidiaries in the Group are:
Sopharma Trading AD - a commercial company registered in Bulgaria by Decision No. 3594 of the Varna District Court dated October 16, 1998, with its registered office and address of management at: Sofia, Izgrev District, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 12th Floor;
Sopharmacy EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 201501191300026 dated January 19, 2015, with its registered office and address of management in Sofia, Izgrev District, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 12th Floor;
Sopharmacy 2 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20150617110324 dated June 17, 2015, with its registered office and address of management at: Sofia, Izgrev District, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 12th Floor;
Sopharmacy 3 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20151202165822 dated December 2, 2015, with its registered office and address of management at: Sofia, Izgrev District, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 12th Floor;
Sopharmacy 4 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20160229093338 dated February 29, 2016, with its registered office and address of management at: Sofia, Izgrev District, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 12th Floor;
Sopharmacy 5 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20160301155620 dated March 1, 2016, with its registered office and address of management at: Sofia, Izgrev District, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 12th Floor;
Sopharmacy 6 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20140127170842 dated January 27, 2014, with its registered office and address of
management at , Sofia, Izgrev District, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 12th Floor;
Sopharmacy 7 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20170315161212 dated March 15, 2017, with its registered office and address of management at: Sofia, Izgrev District, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 12th Floor;
Sopharmacy 8 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20170627142803 dated June 27, 2017, with its registered office and address of management at: Sofia, Izgrev District, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 12th Floor;
Sopharmacy 9 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20170911100706 dated September 11, 2017, with its registered office and address of management at: Sofia, Izgrev District, 5 Lachezar Stanchev St., Sopharma Business Towers, Building "A", 12th Floor;
Sopharmacy 10 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20170911101412 dated September 11, 2017, with its registered office and address of management at: Sofia, Izgrev District, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 12th Floor;
Sopharmacy 11 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20170302125338 dated March 2, 2017, with its registered office and address of management at: Sofia, Izgrev District, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 12th Floor;
Sopharmacy 12 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20170306085236 dated March 6, 2017, with its registered office and address of management at: Sofia, Izgrev District, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 12th Floor;
Sopharmacy 13 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20170306080850 dated March 6, 2017, with its registered office and address of management at: Sofia, Izgrev District, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 12th Floor;
Sopharmacy 14 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20170306081205 dated March 6, 2017, with its registered office and address of management at: Sofia, Izgrev District, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 12th Floor;
Sopharmacy 15 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20170302134305 dated March 2, 2017, with its registered office and address of management at: Sofia, Izgrev District, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 12th Floor;
Sopharmacy 16 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20180515105543 dated May 15, 2018, with its registered office and address of
management - Sofia, Izgrev District, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 12th Floor;
Sopharmacy 17 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20180515130642 dated May 15, 2018, with its registered office and address of management at: Sofia, Izgrev District, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 12th Floor;
Sopharmacy 18 EOOD-a commercial company registered in Bulgaria by decision of the Registry Agency No. 20190228133836 dated February 28, 2019, with its registered office and address of management at: Sofia, Izgrev District, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 12th Floor;
Sopharmacy 19 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090226110235 dated February 26, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th floor.
Sopharmacy 20 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090518182226 dated May 18, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 21 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090519084124 dated May 19, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 22 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090320091825 dated March 20, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 23 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090604184353 dated June 4, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, "Iztok" Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building "A", 13th Floor.
Sopharmacy 24 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090604170149 dated June 4, 2009, with its registered office and address of management at: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 25 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090519080611 dated May 19, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 26 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090226120647 dated February 26, 2009, with its registered office and address of
management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 27 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090604181926 dated June 4, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building "A", 13th floor.
Sopharmacy 28 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090227145039 dated February 27, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 29 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090605085738 dated June 5, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building "A", 13th floor.
Sopharmacy 30 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090227160338 dated February 27, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 31 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20080630143914 dated June 30, 2008, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 32 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090319152459 dated March 19, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 33 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090226112827 dated February 26, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 34 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090226165512 dated February 26, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 35 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090513180047 dated May 13, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 36 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090519083827 dated May 19, 2009, with its registered office and address of
management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 37 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090226102708 dated February 26, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 38 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090519090345 dated May 19, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 39 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090227150054 dated February 27, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 40 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20081220153409 dated December 20, 2008, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 41 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090519080839 dated May 19, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 42 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090518183127 dated May 18, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 43 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090226105948 dated February 26, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 44 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090605134931 dated June 5, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, "Iztok" Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building "A", 13th Floor.
Sopharmacy 45 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090519091916 dated May 19, 2009, with its registered office and address of management at: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 46 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090519083054 dated May 19, 2009, with its registered office and address of
management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 47 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090227154137 dated February 27, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 48 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090227155742 dated February 27, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 49 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090518162442 dated May 18, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 50 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090227152516 dated February 27, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 51 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090227153607 dated February 27, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 52 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090518174837 dated May 18, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 53 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090226101122 dated February 26, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 54 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090519085825 dated May 19, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 55 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090414165833 dated April 14, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 56 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090519071228 dated May 19, 2009, with its registered office and address of
management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 57 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090604164039 dated June 4, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 58 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090227160132 dated February 27, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 59 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090114162615 dated January 14, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 60 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20080422121447 dated April 22, 2008, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 61 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20090114170550 dated January 14, 2009, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 62 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20080512090050 dated May 12, 2008, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 63 EAD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20080410180229 dated April 10, 2008, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 64 AD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20080411103252 dated April 11, 2008, with its registered office and address of management: Sofia 1220, Nadezhda District, 16 Rozen St.
Sopharmacy 65 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 2023122115545 dated December 21, 2023, with its registered office and address of management at: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 66 EOOD-a commercial company registered in Bulgaria by decision of the Registry Agency No. 20240108112701 dated January 8, 2024, with its registered office and address of
management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th Floor.
Sopharmacy 67 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20240109162219 dated January 9, 2024, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th floor.
Sopharmacy 68 EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20240108112943 dated January 8, 2024, with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 13th floor.
Sopharma Warsaw SP. Sp. z o.o., Poland - a commercial company registered in Poland by Decision No. DSR 0000372245 of December 17, 2010, of the 12th Commercial Division of the National Court Register in Warsaw, with its registered office and address of management at: Poland, Warsaw, 8 Halubinskiego Street;
PAO Vitamini, Ukraine - a commercial company registered in Ukraine by Decision No. 133 of April 15, 1994, of the Uman City Court, with its registered office and address of management at: Ukraine, Cherkasy Oblast, Uman, 31 Leninsky Iskry St.;
OOO Sopharma Ukraine, Ukraine - a commercial company registered in Ukraine by Decision No. 10691020000029051 of August 7, 2012, of the Unified State Register of Legal Entities and Individual Entrepreneurs, with its registered office and address of management at: Ukraine, Kyiv, Obolonskyi District, 9 Moskovskyi Avenue, Building 4, 2nd Floor, Office 4-203;
Sopharma Trading D.o.o., Serbia - a commercial company registered in Serbia by Decision No. 07829531 of February 5, 1992, of the Agency for Business Registers, with its registered office and address of management at: Serbia, Belgrade, 48b Zoran Djindjic Blvd.;
TOO Sopharma Kazakhstan, Kazakhstan - a commercial company registered in Kazakhstan by Decision No. 5286-1910-04-TOO dated November 6, 2014, of the Ministry of Justice, Auezov District, with its registered office and address of management at: Kazakhstan, Almaty, Auezov District, Mamir Microdistrict - 4, Building 190;
Pharmachim EOOD, Serbia - a commercial company registered in Serbia under BD 27219/2020 on April 14, 2020, by the Agency for Business Registers of Belgrade, with its registered office and address of management at: Republic of Serbia, Belgrade, 6 Vladimira Popovića St.;
Sopharma Rus OOO, Russia-a commercial company registered in Russia by Decision No. 1237700691524 dated October 13, 2023, of the Unified State Register of Legal Entities, with its registered office and address of management at: Russia, Moscow, Letnikovskaya St. No. 10.
Pharmonova D.O.O., Serbia-a commercial company registered in Serbia by Decision No. 20408642 of April 15, 2008, of the Agency for Business Registers of Belgrade, with its registered office and address of management at: Republic of Serbia, Belgrade, Baye Pivljanina St. No. 1;
SOOO Brititrade, Belarus-a commercial company registered in Belarus by Decision No. 190567633 of September 24, 2004, of the Minsk Regional Executive Committee, with its registered
office and address of management at: Republic of Belarus, Minsk District, Shchomyslitsky Rural Council No. 18;
OOO DabradzeyaFarm, Belarus - a commercial company registered in Belarus by Decision No. 591034846 of June 17, 2020, of the Grodno City Executive Committee, with its registered office and address of management at: Republic of Belarus, Grodno, Garbarskaya St., 4;
OOO Ne Ska, Belarus-a commercial company registered in Belarus by Decision No. 191582872 of April 12, 2011, of the Minsk District Executive Committee, with its registered office and address of management at: Republic of Belarus, Minsk District, Shchomyslitsky Rural Council No. 18;
OOO Bellerophon, Belarus - a commercial company registered in Belarus by Decision No. 190470316 of July 17, 2003, of the Minsk Regional Executive Committee, with its registered office and address of management at: Republic of Belarus, Minsk District, Shchomyslitsky Rural Council No. 18;
OOO AlfaApteka, Belarus - a commercial company registered in Belarus by Decision No. 692109178 of December 21, 2018, of the Minsk District Executive Committee, with its registered office and address of management at: Republic of Belarus, Minsk District, Shchomyslitsky Rural Council No. 18;
OOO FitoBel, Belarus - a commercial company registered in Belarus by Decision No. 100456458 of February 3, 2020, of the Minsk District Executive Committee, with its registered office and address of management at: Republic of Belarus, Minsk District, Shchomyslitsky Rural Council No. 18;
OOO Tabina, Belarus - a commercial company registered in Belarus by Decision No. 101260261 of December 29, 1999, of the Minsk Regional Executive Committee, with its registered office and address of management at: Republic of Belarus, Minsk District, Shchomyslitsky Rural Council No. 18;
ODO Salusline, Belarus - a commercial company registered in Belarus by Decision No. 500046184 of May 5, 2006, of the Grodno Regional Executive Committee, with its registered office and address of management at: Republic of Belarus, Grodno, Slavinskogo St. No. 5;
Sopharmacy D.o.o., Serbia - a commercial company registered in Serbia by decision of the Register of Health Institutions BZU 1160/2024 dated August 30, 2024, and with its registered office and address of management at: Republic of Serbia, Belgrade-Novi Beograd, 29 Marshal Tolbukhin Blvd.;
AU Sopharmacy Nova , Serbia (former company name until October 3, 2025 Pharmacy (AU) Great Pharmacy) - a commercial company registered in Serbia by decision of the Register of Healthcare Facilities BZU 85/2024 dated January 18, 2024, with its registered office and address of management at: Republic of Serbia, Belgrade-Palilula, Viline Vode St.;
BOOO SpetsApharmacy, Belarus - a commercial company registered in Belarus by Decision No. 700432245 of March 9, 1998, of the Mogilev Regional Executive Committee, with its registered office and address of management at: Republic of Belarus, Mogilev Region, Bobruisk, Pushkin St., 163;
SofTech Services EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20250228081900 dated February 28, 2025 and with its registered office and address of management: Sofia 1756, Izgrev District, Iztok Residential Complex, 5 Lachezar Stanchev St., Sopharma Business Towers, Building A, 15th Floor;
Sopharmacy Plus EOOD - a commercial company registered in Bulgaria by decision of the Registry Agency No. 20250716141706 dated July 16, 2025, with its registered office and address of management: Sofia 1220, Nadezhda District, 16 Rozhen Blvd.;
EOOD.
On January 2, 2025, the subsidiary Sopharma Poland ZOO was liquidated.
On February 28, 2025, the parent company established SofTech Services EOOD.
On July 16, 2025, the subsidiary Sofarma Trading AD established the company Sopharmacy Plus
Joint VenturesAs of March 31, 2026, the Group's joint ventures are:
Momina Krepost AD - a commercial company registered in Bulgaria by decision of the Veliko Tarnovo District Court No. 3426/1991, with its registered office and address of management at 23 Magistralna St., Veliko Tarnovo.
ZAO Kompaniya Interfarm, Belarus - a commercial company registered in Belarus by Decision No. 300000556 of November 27, 1996, of the Vitebsk Regional Executive Committee, with its registered office and address of management at: Republic of Belarus, 210027, Vitebsk, Stroiteley Blvd., 3/2-162;
Associated companiesAs of March 31, 2026, the Group's associated companies are:
Doverie Obedinen Holding AD - a commercial company registered with the Sofia City Court under Company Case No. 13056 of 1996, with its registered office and address of management at 5 Lachezar Stanchev St., Building A, Sofia 1756, Floor 7.
Sopharma Properties REIT - a commercial company registered with the Sofia City Court by Decision No. 1 of March 24, 2006, with its registered office and address of management at 5 Lachezar Stanchev St., Sofia 1756.
Sopharma Buildings REIT - a commercial company registered with the Sofia City Court by Decision No. 1 of August 14, 2007, with its registered office and address of management at 5 Lachezar Stanchev St., Sofia 1756.
OOO GalenaFarm, Belarus - a commercial company registered in Belarus by Decision No. 291192483 of June 12, 2013, of the Minsk Regional Executive Committee, with its registered office and address of management at: Republic of Belarus, Minsk District, Shchomyslitsky Rural Council No. 18;
OOO Medjel, Belarus - a commercial company registered in Belarus by Decision No. 100100334 of June 22, 1993, of the Minsk Regional Executive Committee, with its registered office and address of management at: Republic of Belarus, Minsk District, Shchomyslitsky Rural Council No. 18;
ODO Alenfarm-Plus, Belarus - a commercial company registered in Belarus by Decision No. 191068124 of September 25, 2008, of the Minsk Regional Executive Committee, with its registered office and address of management at: Republic of Belarus, Minsk District, Shchomyslitsky Rural Council No. 18;
-
Ownership and Management of the Parent Company
Sopharma AD is a public company under the Bulgarian Public Offering of Securities Act. Since
November 2011, the company's shares have also been traded on the Warsaw Stock Exchange.
As of March 31, 2026, the distribution of the parent company's share capital is as follows:
%
Donev Investments Holding AD
40.25
Telecomplect Invest AD
16.72
Sopharma AD (repurchased shares)
1.99
Other legal entities
25.69
Ognian Ivanov Donev
9.09
Other individuals
6.26
100.00
Sopharma AD has a single-tier management system with a five-member Board of Directors. The management of the parent company, represented by the Board of Directors, has the following composition as of March 31, 2026:
Ognian Donev, Ph.D. Chair
Vesela Stoeva Deputy Chairman
Bisera Lazarova Member
Alexander Tchaushev Member
Ivan Badinski Member
The parent company is represented and managed by the Executive Director, Ognian Donev, PhD. Pursuant to a commercial management agreement dated June 9, 2020, the company's procurator is
Simeon Donev.
The Audit Committee supports the work of the Board of Directors and acts as the body responsible for general management, monitoring, and supervising the company's internal control system, risk management, and financial reporting system.
The Audit Committee has the following composition:
Vasil Naydenov Chair
Tsvetanka Zlateva Member
Kristina Atanasova - Elliott Member
-
Group Structure and Scope of Activity
The Group's structure includes Sopharma AD as the parent company and the following subsidiaries:
Subsidiaries
Companies in Bulgaria
March 31,
2026
Ownership
%
12/31/2025
% stake
Date of
acquisition of
control
Date of divestiture/merger
Sopharma Trading AD
87.22
87.22
June 8, 2006
Sopharmacy EOOD**
87.22
87.22
January 19, 2015
Sopharmacy 2 EOOD**
87.22
87.22
June 17, 2015
Sopharmacy 3 EOOD**
87.22
87.22
December 2,
2015
Sopharmacy 4 EOOD**
87.22
87.22
February 29,
2016
Sopharmacy 5 EOOD**
87.22
87.22
March 1, 2016
Sopharmacy 6 EOOD**
87.22
87.22
12/03/2015
Sopharmacy 7 EOOD**
87.22
87.22
March 15, 2017
Sopharmacy 8 EOOD**
87.22
87.22
June 27, 2017
Sopharmacy 9 EOOD**
87.22
87.22
September 11,
2017
Sopharmacy 10 EOOD**
87.22
87.22
September 11,
2017
Sopharmacy 11 EOOD**
87.22
87.22
December 7,
2017
Sopharmacy 12 EOOD**
87.22
87.22
December 7,
2017
Sopharmacy 13 EOOD**
87.22
87.22
December 7,
2017
Sopharmacy 14 EOOD**
87.22
87.22
December 7,
2017
Sopharmacy 15 EOOD**
87.22
87.22
December 7,
2017
Sopharmacy 16 EOOD**
87.22
87.22
May 15, 2018
Sopharmacy 17 EOOD**
87.22
87.22
May 15, 2018
Sopharmacy 18 EOOD**
87.22
87.22
February 28,
2019
Sopharmacy 19 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 20 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 21 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 22 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 23 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 24 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 25 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 26 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 27 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 28 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 29 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 30 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 31 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 32 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 33 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 34 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 35 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 36 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 37 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 38 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 39 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 40 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 41 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 42 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 43 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 44 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 45 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 46 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 47 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 48 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 49 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 50 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 51 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 52 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 53 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 54 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 55 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 56 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 57 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 58 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 59 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 60 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 61 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 62 EOOD**
87.22
87.22
October 1, 2020
Sopharmacy 63 EAD**
87.22
87.22
October 1, 2020
Sopharmacy 64 AD**
87.22
87.22
October 1, 2020
Sopharmacy 65 EOOD**
87.22
87.22
March 13, 2024
Sopharmacy 66 EOOD**
87.22
87.22
February 21,
2024
Sopharmacy 67 EOOD**
87.22
87.22
February 21,
2024
Sopharmacy 68 EOOD**
87.22
87.22
February 21,
2024
SofTech Services EOOD
100.00
100.00
February 28,
2025
Sopharmacy Plus EOOD**
87.22
87.22
July 16, 2025
* effective ownership percentage
** indirect ownership
Subsidiaries Foreign companies
March 31,
2026
Ownership
%
December 31, 2025
% stake
Date of acquisition of
control
Date of divestiture/merger
PAO Vitamini
100.00
100.00
January 18, 2008
Sopharma Warsaw Sp. z o.o.
100.00
100.00
November 23,
2010
OOO Sopharma Ukraine
100.00
100.00
August 7, 2012
TOO Sopharma Kazakhstan
100.00
100.00
November 6,
2014
Sopharma Trading D.o.o.**
87.22
87.22
August 9, 2017
Pharmachim EOOD
100.00
100.00
April 14, 2020
OOO Sopharma Rus
100.00
100.00
October 13, 2023
Pharmana D.O.O.
100.00
100.00
August 13, 2024
Sopharmacy D.o.o. **
87.22
87.22
August 30, 2024
SOOO Brititrade**
68.90
68.90
July 10, 2024
ODO SalusLine**
44.79
44.79
July 10, 2024
Tabina OOO**
68.15
68.15
July 10, 2024
Bellerophon OOO**
48.92
48.92
July 10, 2024
Ne Ska OOO**
68.90
68.90
July 10, 2024
FitoBel OOO**
68.90
68.90
July 10, 2024
AlfaApteka OOO**
68.90
68.90
July 10, 2024
DabradzeyaPharm OOO**
68.90
68.90
July 10, 2024
AU Sopharmacy Nova (renamed from
Pharmacy Establishment (AU) Great
87.22
87.22
October 9, 2024
Pharmasi as of 10/03/2025) **
BOOO SpetsApharmacy**
68.90
68.90
December 31,
2024
* effective ownership percentage
** Indirect ownership
-
Ownership and Management of the Parent Company
Sopharmacy EOOD is a subsidiary through Sopharma Trading AD-Sopharma Trading AD owns 100% of the capital of Sopharmacy EOOD;
Sopharmacy 2 EOOD is a subsidiary through Sopharmacy EOOD-Sopharmacy EOOD owns 100% of the capital of Sopharmacy 2 EOOD;
Sopharmacy 3 EOOD is a subsidiary through Sopharmacy EOOD-Sopharmacy EOOD owns 100% of the capital of Sopharmacy 3 EOOD;
Sopharmacy 4 EOOD is a subsidiary through Sopharmacy EOOD-Sopharmacy EOOD owns 100% of the capital of Sopharmacy 4 EOOD;
Sopharmacy 5 EOOD is a subsidiary of Sopharmacy EOOD-Sopharmacy EOOD owns 100% of the capital of Sopharmacy 5 EOOD;
Sopharmacy 6 EOOD is a subsidiary through Sopharmacy EOOD-Sopharmacy EOOD owns 100% of the capital of Sopharmacy 6 EOOD;
Sopharmacy 7 EOOD is a subsidiary through Sopharmacy EOOD-Sopharmacy EOOD owns 100% of the capital of Sopharmacy 7 EOOD;
Sopharmacy 8 EOOD is a subsidiary through Sopharmacy EOOD-Sopharmacy EOOD owns 100% of the capital of Sopharmacy 8 EOOD;
Sopharmacy 9 EOOD is a subsidiary through Sopharmacy EOOD-Sopharmacy EOOD owns 100% of the capital of Sopharmacy 9 EOOD;
Sopharmacy 10 EOOD is a subsidiary through Sopharmacy EOOD-Sopharmacy EOOD owns 100% of the capital of Sopharmacy 10 EOOD;
Sopharmacy 11 EOOD is a subsidiary through Sopharma Trading AD-Sopharma Trading AD owns 100% of the capital of Sopharmacy 11 EOOD;
Sopharmacy 12 EOOD is a subsidiary through Sopharma Trading AD - Sopharma Trading AD owns 100% of the capital of Sopharmacy 12 EOOD;
Sopharmacy 13 EOOD is a subsidiary through Sopharma Trading AD - Sopharma Trading AD owns 100% of the capital of Sopharmacy 13 EOOD;
Sopharmacy 14 EOOD is a subsidiary through Sopharma Trading AD - Sopharma Trading AD owns 100% of the capital of Sopharmacy 14 EOOD;
Sopharmacy 15 EOOD is a subsidiary through Sopharma Trading AD - Sopharma Trading AD owns 100% of the capital of Sopharmacy 15 EOOD;
Sopharmacy 16 EOOD is a subsidiary through Sopharmacy EOOD - Sopharmacy EOOD owns 100% of the capital of Sopharmacy 16 EOOD;
Sopharmacy 17 EOOD is a subsidiary through Sopharmacy EOOD - Sopharmacy EOOD owns 100% of the capital of Sopharmacy 17 EOOD;
Sopharmacy 18 EOOD is a subsidiary through Sopharmacy EOOD-Sopharmacy EOOD owns 100% of the capital of Sopharmacy 18 EOOD;
Sopharmacy 19 EOOD is a subsidiary through Sopharmacy 61 EOOD-Sopharmacy 61 EOOD owns 100% of the capital of Sopharmacy 19 EOOD;
Sopharmacy 20 EOOD is a subsidiary through Sopharmacy 59 EOOD - Sopharmacy 59 EOOD owns 100% of the capital of Sopharmacy 20 EOOD;
Sopharmacy 21 EOOD is a subsidiary through Sopharmacy 40 EOOD-Sopharmacy 40 EOOD owns 100% of the capital of Sopharmacy 21 EOOD;
Sopharmacy 22 EOOD is a subsidiary through Sopharmacy 59 EOOD-Sopharmacy 59 EOOD owns 100% of the capital of Sopharmacy 22 EOOD;
Sopharmacy 23 EOOD is a subsidiary through Sopharmacy 59 EOOD-Sopharmacy 59 EOOD owns 100% of the capital of Sopharmacy 23 EOOD;
Sopharmacy 24 EOOD is a subsidiary through Sopharmacy 40 EOOD-Sopharmacy 40 EOOD owns 100% of the capital of Sopharmacy 24 EOOD;
Sopharmacy 25 EOOD is a subsidiary through Sopharmacy 40 EOOD-Sopharmacy 40 EOOD owns 100% of the capital of Sopharmacy 25 EOOD;
Sopharmacy 26 EOOD is a subsidiary through Sopharmacy 40 EOOD-Sopharmacy 40 EOOD owns 100% of the capital of Sopharmacy 26 EOOD;
Sopharmacy 27 EOOD is a subsidiary through Sopharmacy 59 EOOD-Sopharmacy 59 EOOD owns 100% of the capital of Sopharmacy 27 EOOD;
Sopharmacy 28 EOOD is a subsidiary through Sopharmacy 60 EOOD-Sopharmacy 60 EOOD owns 100% of the capital of Sopharmacy 28 EOOD;
Sopharmacy 29 EOOD is a subsidiary through Sopharmacy 59 EOOD-Sopharmacy 59 EOOD owns 100% of the capital of Sopharmacy 29 EOOD;
Sopharmacy 30 EOOD is a subsidiary through Sopharmacy 61 EOOD - Sopharmacy 61 EOOD owns 100% of the capital of Sopharmacy 30 EOOD;
Sopharmacy 31 EOOD is a subsidiary through Sopharmacy 60 EOOD-Sopharmacy 60 EOOD owns 100% of the capital of Sopharmacy 31 EOOD;
Sopharmacy 32 EOOD is a subsidiary through Sopharmacy 63 EAD-Sopharmacy 63 EAD owns 100% of the capital of Sopharmacy 32 EOOD;
owns 100% of the capital of Sopharmacy 33 EOOD;
Sopharmacy 34 EOOD is a subsidiary through Sopharmacy 59 EOOD-Sopharmacy 59 EOOD owns 100% of the capital of Sopharmacy 34 EOOD;
Sopharmacy 35 EOOD is a subsidiary through Sopharmacy 59 EOOD-Sopharmacy 59 EOOD owns 100% of the capital of Sopharmacy 35 EOOD;
Sopharmacy 36 EOOD is a subsidiary through Sopharmacy 40 EOOD-Sopharmacy 40 EOOD owns 100% of the capital of Sopharmacy 36 EOOD;
Sopharmacy 37 EOOD is a subsidiary through Sopharmacy 40 EOOD-Sopharmacy 40 EOOD owns 100% of the capital of Sopharmacy 37 EOOD;
Sopharmacy 38 EOOD is a subsidiary through Sopharmacy 40 EOOD-Sopharmacy 40 EOOD owns 100% of the capital of Sopharmacy 38 EOOD;
Sopharmacy 39 EOOD is a subsidiary through Sopharmacy 59 EOOD-Sopharmacy 59 EOOD owns 100% of the capital of Sopharmacy 39 EOOD;
Sopharmacy 40 EOOD is a subsidiary through Sopharmacy 63 EAD - Sopharmacy 63 EAD owns 100% of the capital of Sopharmacy 40 EOOD;
Sopharmacy 41 EOOD is a subsidiary through Sopharmacy 60 EOOD - Sopharmacy 60 EOOD owns 100% of the capital of Sopharmacy 41 EOOD;
Sopharmacy 42 EOOD is a subsidiary through Sopharmacy 59 EOOD-Sopharmacy 59 EOOD owns 100% of the capital of Sopharmacy 42 EOOD;
Sopharmacy 43 EOOD is a subsidiary through Sopharmacy 40 EOOD-Sopharmacy 40 EOOD owns 100% of the capital of Sopharmacy 43 EOOD;
Sopharmacy 44 EOOD is a subsidiary through Sopharmacy 40 EOOD-Sopharmacy 40 EOOD owns 100% of the capital of Sopharmacy 44 EOOD;
Sopharmacy 45 EOOD is a subsidiary through Sopharmacy 40 EOOD-Sopharmacy 40 EOOD owns 100% of the capital of Sopharmacy 45 EOOD;
Sopharmacy 46 EOOD is a subsidiary through Sopharmacy 59 EOOD-Sopharmacy 59 EOOD owns 100% of the capital of Sopharmacy 46 EOOD;
Sopharmacy 47 EOOD is a subsidiary through Sopharmacy 59 EOOD-Sopharmacy 59 EOOD owns 100% of the capital of Sopharmacy 47 EOOD;
Sopharmacy 48 EOOD is a subsidiary through Sopharmacy 61 EOOD - Sopharmacy 61 EOOD owns 100% of the capital of Sopharmacy 48 EOOD;
Sopharmacy 49 EOOD is a subsidiary through Sopharmacy 40 EOOD - Sopharmacy 40 EOOD owns 100% of the capital of Sopharmacy 49 EOOD;
Sopharmacy 50 EOOD is a subsidiary through Sopharmacy 60 EOOD-Sopharmacy 60 EOOD owns 100% of the capital of Sopharmacy 50 EOOD;
Sopharmacy 51 EOOD is a subsidiary through Sopharmacy 60 EOOD-Sopharmacy 60 EOOD owns 100% of the capital of Sopharmacy 51 EOOD;
Sopharmacy 52 EOOD is a subsidiary through Sopharmacy 59 EOOD-Sopharmacy 59 EOOD owns 100% of the capital of Sopharmacy 52 EOOD;
Sopharmacy 53 EOOD is a subsidiary through Sopharmacy 40 EOOD - Sopharmacy 40 EOOD owns 100% of the capital of Sopharmacy 53 EOOD;
Sopharmacy 54 EOOD is a subsidiary through Sopharmacy 59 EOOD - Sopharmacy 59 EOOD owns 100% of the capital of Sopharmacy 54 EOOD;
Sopharmacy 55 EOOD is a subsidiary through Sopharmacy 60 EOOD-Sopharmacy 60 EOOD owns 100% of the capital of Sopharmacy 55 EOOD;
Sopharmacy 56 EOOD is a subsidiary through Sopharmacy 59 EOOD-Sopharmacy 59 EOOD owns 100% of the capital of Sopharmacy 56 EOOD;
Sopharmacy 57 EOOD is a subsidiary through Sopharmacy 59 EOOD-Sopharmacy 59 EOOD owns 100% of the capital of Sopharmacy 57 EOOD;
Sopharmacy 58 EOOD is a subsidiary through Sopharmacy 60 EOOD - Sopharmacy 60 EOOD owns 100% of the capital of Sopharmacy 58 EOOD;
Sopharmacy 59 EOOD is a subsidiary of Sopharmacy 63 EAD-Sopharmacy 63 EAD owns 100% of the capital of Sopharmacy 59 EOOD;
Sopharmacy 60 EOOD is a subsidiary through Sopharmacy 63 EAD-Sopharmacy 63 EAD owns 100% of the capital of Sopharmacy 60 EOOD;
Sopharmacy 61 EOOD is a subsidiary through Sopharmacy 63 EAD-Sopharmacy 63 EAD owns 100% of the capital of Sopharmacy 61 EOOD;
Sopharmacy 62 EOOD is a subsidiary through Sopharmacy 63 EAD-Sopharmacy 63 EAD owns 100% of the capital of Sopharmacy 62 EOOD;
Sopharmacy 63 EAD is a subsidiary through Sopharma Trading AD-Sopharma Trading AD owns 100% of the capital of Sopharmacy 63 EAD;
Sopharmacy 64 AD is a subsidiary through Sopharma Trading AD - Sopharma Trading AD owns 100% of the capital of Sopharmacy 64 AD;
Sopharmacy 65 EOOD is a subsidiary through Sopharmacy EOOD - Sopharmacy EOOD owns 100% of the capital of Sopharmacy 65 EOOD;
Sopharmacy 66 EOOD is a subsidiary through Sopharmacy EOOD - Sopharmacy EOOD owns 100% of the capital of Sopharmacy 66 EOOD;
Sopharmacy 67 EOOD is a subsidiary through Sopharmacy EOOD-Sopharmacy EOOD owns 100% of the capital of Sopharmacy 67 EOOD;
Sopharmacy 68 EOOD is a subsidiary through Sopharmacy EOOD-Sopharmacy EOOD owns 100% of the capital of Sopharmacy 68 EOOD;
Sopharma Trading d.o.o., Serbia is a subsidiary through Sopharma Trading AD-Sopharma Trading AD owns 100% of the capital of Sopharma Trading d.o.o.;
Sopharmacy D.o.o., Serbia, is a subsidiary through Sopharma Trading D.o.o.-Sopharma Trading
D.o.o. owns 100% of the capital of Sopharmacy D.o.o.;
SOOO Brititrade, Belarus is a subsidiary through Sopharma Trading AD-Sopharma Trading AD owns 79% of the capital of SOOO Brititrade;
ODO SalusLine, Belarus is a subsidiary through SOOO Brititrade - SOOO Brititrade holds 65% of the capital of ODO SalusLine;
Tabina OOO, Belarus, is a subsidiary through Brititrade OOO-Brititrade OOO owns 98.9% of the capital of Tabina OOO;
Bellerophon OOO, Belarus, is a subsidiary through Brititrade OOO - Brititrade OOO owns 71% of the capital of Bellerophon OOO;
Ne Ska OOO, Belarus, is a subsidiary through Brititrade OOO - Brititrade OOO owns 100% of the capital of Ne Ska OOO;
FitoBel OOO, Belarus, is a subsidiary through Brititrade OOO - Brititrade OOO owns 100% of the capital of FitoBel OOO;
AlfaApteka OOO, Belarus, is a subsidiary through Brititrade OOO - Brititrade OOO owns 100% of the capital of AlfaApteka OOO;
DabradzeyaFarm OOO, Belarus, is a subsidiary through Brititrade OOO - Brititrade OOO owns 100% of the capital of DabradzeyaFarm OOO;
AU Sopharmacy Nova (Pharmacy (AU) Great Pharmacy until October 3, 2025), Serbia is a subsidiary through Sopharma Trading D.o.o.-Sopharma Trading D.o.o. owns 100% of the capital of AU Sopharmacy Nova;
BOOO SpetsApharmacia, Belarus, is a subsidiary through SOOO Brititrade-SOOO Brititrade owns 100% of the capital of BOOO SpetsApharmacia;
Sopharmacy Plus EOOD is a subsidiary through Sopharma Trading AD - Sopharma Trading AD owns 100% of the capital of Sopharmacy Plus EOOD;
The main business activity of the Group's companies is concentrated in the pharmaceutical sector,
with the exception of certain companies whose business activity is in the field of securities investments.
The parent company holds a license for the manufacture of medicinal products/import No. BG/MIA
-0543 dated October 30, 2025, issued by the Executive Agency for Medicines (EAM).
The parent company holds a wholesale distribution license for medicinal products No. BG/WDAIMP
0583 dated August 7, 2025, issued by the Executive Agency for Medicines (EAM).
The scope of business of the Group companies is as follows:
Sopharma AD - manufacturing and trading in medicinal substances (active ingredients) and dosage forms; research and development and engineering and implementation activities in the field of medicinal products; manufacturing and marketing of veterinary medicinal products and provision of laboratory services related to the analysis of animal blood samples-until January 30, 2026; manufacture and sale of medicinal products, cosmetic products, food supplements, and repackaging of active substances, chemical substances, and mixtures.
Sopharma Trading AD - trade in pharmaceutical products;
Sopharmacy EOOD - franchising, know-how, property leasing, trade, and others;
Sopharma 2 EOOD - Sopharma 5 EOOD, Sopharma 7 EOOD - Sopharma 62 EOOD and Sopharma 65 EOOD - Sopharma 68 EOOD - retail trade in medicinal products;
Sopharmacy 6 EOOD - online and offline retail trade in medicinal products;
Sopharmacy 63 EAD and Sopharmacy 64 AD - retail trade in medicinal products, franchising, and other services;
PAO Vitamini, Ukraine - manufacturing and trade in pharmaceutical products;
OOO Sopharma Ukraine, Ukraine - trade in pharmaceutical products and market and public opinion research;
Sopharma Trading D.o.o. - wholesale trade in medicinal products;
Sopharma Poland Sp. z o.o., Poland, in liquidation - market and public opinion research;
Sopharma Warsaw SP. Z.O.O., Poland - wholesale trade in pharmaceutical and medical goods, and
market and public opinion research;
TOO Sopharma Kazakhstan, Kazakhstan - trade in pharmaceutical products;
Pharmachim EOOD, Serbia - consulting services;
OOO Sopharma Rus, Russia - wholesale trade in pharmaceutical products and market and public opinion research.
Farnanova D.O.O., Serbia - manufacturing and trade in pharmaceutical products.
SOOO Brititrade, Belarus - wholesale trade in medicinal products and medical devices.
SalusLine OO, Belarus - retail trade in medicinal products.
Tabina OOO, Belarus - retail trade in medicinal products.
Bellerophon OOO, Belarus - retail trade in medicinal products.
OOO Ne Ska, Belarus - retail trade in medicinal products.
FitoBel OOO, Belarus - retail trade in medicinal products.
AlfaApteka OOO, Belarus - consulting services.
DabradzeyaFarm OOO, Belarus - retail trade in medicinal products.
Sopharmacy D.o.o., Serbia - retail trade in pharmaceutical products.
AU Sopharmacy Nova (Pharmacy (AU) Great Pharmacy until October 3, 2025), Serbia - retail trade in pharmaceutical products.
BOOO SpetsApharmacy, Belarus - retail trade in medicinal products
SofTech Services EOOD - provision and development of software services and solutions
Sopharmacy Plus EOOD - wholesale trade in OTC products.
The parent company and its subsidiaries: Sopharma Trading AD, Sopharmacy EOOD - Sopharmacy 62 EOOD, Sopharma 63 EAD, Sopharmacy 64 AD, Sopharmacy 65 EOOD - Sopharmacy 68 EOOD, SofTech Services EOOD, and Sopharmacy Plus EOOD operate in Bulgaria.
Sopharma Warsaw Sp. z o.o. operates in Poland, PAO Vitamini and OOO Sopharma Ukraine-in Ukraine, Sopharma Trading d.o.o., Pharmachim EOOD, Farmanova d.o.o., Sopharmacy D.o.o. and AU Sofarmasi Nova (Pharmacy (AU) Great Pharmacy until October 3, 2025) - in Serbia, TOO Sofarma Kazakhstan - in Kazakhstan, OOO Sopharma Rus - in Russia, Brititrade OOO, SalusLine ODO, Tabina OOO, Bellerophon OOO, Ne Ska OOO, Fitobel OOO, AlfaApteka OOO, DabradzeyaFarm OOO, and SpetsApharmacy OOO - in Belarus.
As of March 31, 2026, the Group's interest in joint ventures is as follows:
Momina Krepost AD - 37.47% stake held by Sopharma AD. The joint venture's business activity is the development, implementation, and production of medical devices for human and veterinary medicine. The company has been a joint venture for the Group since March 10, 2021.
ZAO Kompaniya Interfarm - a joint venture through SOOO Brititrade, 50% stake. The joint venture's business activity is the retail trade of pharmaceutical products. The company has been a joint venture of the Group since July 10, 2024.
As of March 31, 2026, the Group's interest in associated companies is as follows:
Doverie Obedinen Holding AD - 20.00% stake held by Sopharma AD. The company's business activity consists of the acquisition, management, valuation, and sale of shares and/or equity interests in Bulgarian and foreign companies-legal entities.
Sopharma Properties REIT - 45.65% stake held by Sopharma AD. The company's business activity consists of investing funds raised through the issuance of securities in real estate by purchasing ownership rights and other real property rights, carrying out construction and improvements to such properties for the purpose of managing, leasing, leasing, renting, and/or selling them.
Sopharma Buildings REIT - 32.76% stake held by Sopharma AD. The company's business activity consists of investing funds raised through the issuance of securities in real estate (real estate securitization) by acquiring ownership rights and other real property rights, and by renting, leasing, letting, and/or selling such properties.
ODO Alenfarm-Plus - an associated company through Brititrade OOO (40.10% stake). The
company's business activity is the retail sale of pharmaceutical products.
Galenafarm OOO - an associated company through Brititrade OOO (47% stake). The company's
business activity is the retail trade of pharmaceutical products.
ODO Medjel - an associated company through Brititrade OOO (40% stake). The company's
business activity is the retail trade of pharmaceutical products.
As of the date of these consolidated annual financial statements, the average headcount of the Group is 6,005 employees (2025: 6,099 employees).
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Key Indicators of the Economic Environment
Exchange rates are one of the key indicators of the economic environment that affects the operations of the Group companies for the period 2024-2026. The relevant exchange rates are presented in the table below:
Indicator
2024
2025
2026
USD/EUR average for the year/period
0.92440
0.88670
0.85469
USD/EUR at the end of the year
0.96256
0.85056
0.86970
PLN/EUR average for the year
0.23229
0.23583
0.23614
PLN/EUR at the end of the year/period
0.23392
0.23662
0.23320
RSD/EUR average for the year
0.00854
0.00853
0.00852
RSD/EUR at the end of the year/period
0.00854
0.00853
0.00852
UAH/EUR average for the year
0.02304
0.02128
0.01973
UAH/EUR at the end of the year/period
0.02277
0.02006
0.01988
KZT/EUR average for the year
0.00197
0.00170
0.00172
KZT/EUR at the end of the year/period
0.00183
0.00169
0.00181
RUB/EUR average for the year
0.00999
0.01064
0.01090
RUB/EUR at the end of the year/period
0.00847
0.01086
0.01070
BYN/EUR average for the year
0.28477
0.28906
0.29458
BYN/EUR at the end of the year
0.27621
0.29272
0.29484
Source: BNB, National Banks of: Ukraine, Poland, Serbia, Belarus, Kazakhstan, Russia, Belarus, and Moldova.
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Macroeconomic Environment
The Group maintains a stable capital base and debt ratio.
Management has succeeded in maintaining the sound financial condition of the Group companies by keeping revenues and expenses within reasonable limits.
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War in Ukraine and the Middle East - Impact and Effects
The military conflicts that have arisen in the Middle East, as well as the one between Russia and Ukraine, and the related economic sanctions and other measures taken by governments around the world have a significant effect on both the local economies of individual countries and the global economy. Typically, in such conflicts, pharmaceutical products are not subject to sanctions or other restrictions in order to avoid a humanitarian crisis.
The Group's management has not identified any areas in the consolidated financial statements on which the military conflict in the Middle East has a direct and material impact, including with respect to the valuation of individual assets and liabilities. The Group has no significant operations in the Middle East.
The Group's operations in Russia and Ukraine are and could be restricted primarily due to factors
such as logistical difficulties and restrictions on the free movement of funds.
The Group holds investments in two subsidiaries in Ukraine and one subsidiary in Russia. As of the date of preparation of these consolidated financial statements, the assets of these subsidiaries have not been physically affected by military operations, but it is possible that the value of these investments may need to be revised in the future depending on the course of the war and its impact on the companies' operations.
- Climate-related issues
The Group views environmental protection and mitigating the pace of climate change as part of its corporate social responsibility policy and conducts its operations in compliance with environmental protection requirements. The Group implements measures for: separate waste collection, minimization, recovery, and recycling of industrial and household waste; providing appropriate training for staff on issues related to environmental protection and pollution prevention. The Group actively invests in renewable sources of electricity for its own consumption.
The Group has identified insignificant risks caused by climate change that could affect its assets and liabilities. The Group monitors changes in legislation resulting from climate issues and, at this stage, has not identified any potential direct impact on future cash flows, financial results, and financial position.
SIGNIFICANT INFORMATION ON THE GROUP'S ACCOUNTING POLICIES
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Basis for the Preparation of the Consolidated Financial Statements
The consolidated financial statements for the period ending March 31, 2026, have been prepared in accordance with all IFRS accounting standards, which consist of: financial reporting standards and interpretations of the IFRS Interpretations Committee (IFRIC), as endorsed by the International Accounting Standards Board (IASB), and the International Accounting Standards and Interpretations of the Standing Interpretations Committee (SIC), as endorsed by the International Accounting Standards Committee (IASC), which are effective as of January 1, 2025, and which have been adopted by the European Commission. IFRS
accounting standards adopted by the EU is the generally accepted name for the general-purpose accounting framework equivalent to the framework introduced by the definition under § 1, item 8 of the Supplementary Provisions of the Accounting Act under the name "International Accounting Standards" (IAS).
The Group's consolidated financial statements have been prepared on a going concern basis,
assuming that the Group will continue to exist for the foreseeable future.
For the current fiscal year, the Group has adopted all new and/or revised standards and interpretations issued by the International Accounting Standards Board (IASB) and, respectively, by the IFRS Interpretations Committee, which were relevant to its operations.
Since the adoption of these standards and/or interpretations, effective for annual periods beginning on January 1, 2026, there have been no changes in the company's accounting policies, except for certain new disclosures and the expansion of existing disclosures, without this leading to other changes in the classification or measurement of individual reporting items and transactions.
The new and/or amended standards and interpretations include:
Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures - Contracts for Renewable Energy (effective for annual periods beginning on or after January 1, 2026, adopted by the EC). The amendments introduce requirements for the accounting for contracts relating to electricity from renewable sources, namely: a) factors and requirements are added that an entity must consider when applying paragraph 2.4 of IFRS 9 when accounting for contracts for electricity from renewable sources, to clarify under what circumstances the purchase of electricity may be accounted for as "own-use" and benefit from an exemption from the accounting requirements; (b) add requirements for accounting for contracts relating to electricity from renewable sources as hedging instruments; and c) new disclosure requirements are added to enable investors to understand the effect of these contracts on the financial results and cash flows of entities using such contracts.
Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures - Classification and Measurement of Financial Instruments (effective for annual periods beginning on or after January 1, 2026, adopted by the EC). The amendments relate to: a) clarifying the date of initial recognition and derecognition of financial assets and liabilities and introducing a new exception for financial liabilities settled through an electronic payment system; b) adding additional guidance on assessing whether a financial asset meets the "principal and interest only" (PIO) criterion; c) updating the disclosures for equity instruments measured at fair value through other comprehensive income; and d) adding new disclosures for certain instruments with contractual terms that may change the timing or amount of the contractual cash flows.
Annual Improvements, Part 11 in: IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 7 Financial Instruments: Disclosures, Guidance on the Implementation of IFRS 7 Financial Instruments: Disclosures , IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements, IAS 7 Statement of Cash Flows
(effective for annual periods beginning on or after January 1, 2026, adopted by the EC). These improvements introduce partial amendments to the following standards: a) IFRS 1-in the requirements for hedge accounting by an entity applying IFRS for the first time, to align the terminology between IFRS 1 and IFRS 9 regarding hedge accounting. In IFRS 1, the term "conditions" is replaced with the term "criteria," and references are made to the paragraphs in IFRS 9 relating to hedge accounting; b) IFRS 7 - in the requirements for disclosing gains or losses on derecognition. The amendment corrects a reference to paragraph 27A of IFRS 7, which was removed from the standard upon the entry into force of IFRS 13 Fair Value Measurement, and makes a new reference to the relevant paragraphs in IFRS 13. The term "material information that was not based on data from an observable market" is replaced with "significant adverse input data"; c) Guidance on the Implementation of IFRS 7: - The "Introduction" clarifies that the guidance does not illustrate all requirements in the cited paragraphs of IFRS 7; - In the disclosure of a deferred difference between fair value and transaction cost upon initial recognition of financial instruments, inconsistencies between paragraph AG14 of the guidance and paragraph 28 of IFRS 7, arising from the effective date of IFRS 13, are corrected; - in the disclosure of credit risk, the wording is amended to make the text easier to understand; d) IFRS 9 - in the derecognition of a lease liability - the improvements add a reference to paragraph 3.3.3 of IFRS 9 to resolve potential confusion for a lessee applying the derecognition requirements in the standard; - transaction price - the term "transaction price" has been deleted from paragraph 5.1.3 and Note A of IFRS 9, and in paragraph 5.1.3, the improvements refer to the definition in IFRS 15, as required by the specific paragraph; e) IFRS 10 - Identification of De Facto Agents - the amendments remove inconsistencies between paragraphs B73 and B74 of IFRS 10 to eliminate potential confusion regarding the determination of whether entities are acting as de facto agents; f) IAS 7 - Cost Method - the improvements remove the term "cost method" from paragraph 37 of IAS 7, as the term no longer exists as a definition in IFRS.
As of the date of approval for issuance of these financial statements, the following new standards, amended standards, and interpretations have been issued but are not yet effective (and/or have not been adopted by the EC):
IFRS 18 - Presentation and Disclosure in Financial Statements (effective for annual periods beginning on or after January 1, 2027, adopted by the EC). IFRS 18 replaces IAS 1 Presentation of Financial Statements. The requirements in IAS 1 that remain unchanged have been transferred to IFRS 18 with minor wording adjustments or to IAS 8 Accounting Policies, Changes in Accounting Estimates, and Errors and IFRS 7 Financial Instruments: Disclosures, again with minor wording adjustments. The new standard introduces minor changes to IAS 7 Statement of Cash Flows, IAS 33 Earnings Per Share, and IAS 34 Interim Financial Reporting. IFRS 18 aims to improve financial reporting by: a) adding certain categories (operating, investing, and financing) and interim totals (operating profit and profit before financial income and expenses and income taxes) to the statement of profit or loss to
facilitate comparability and consistency in financial information; b) requiring disclosure in the notes to the financial statements of management-defined measures related to the statement of profit or loss to enhance transparency regarding their calculation and to provide insight into how the entity's management views its financial results; d) the addition of new principles for grouping (aggregation and disaggregation) of information, and the establishment of requirements regarding whether the information should be presented as part of the components (elements) of the financial statements or in the notes thereto. Providing principles for the necessary level of detail makes the disclosed information more effective. Although IFRS 18 will not affect how entities calculate their financial results, the standard will introduce changes in how they are presented and disclosed for all entities.
IFRS 19 - Subsidiaries without Public Reporting: Disclosure (effective for annual periods beginning on or after January 1, 2027; not yet adopted by the EC). IFRS 19 allows subsidiaries that meet certain requirements to provide condensed disclosures when applying IFRS in their financial statements. The condensed disclosure requirements of IFRS 19 balance the need of financial statement users for information with the cost savings associated with preparing full disclosures under IFRS by qualifying subsidiaries. IFRS 19 is a voluntary standard for qualifying subsidiaries. A subsidiary qualifies if: it is not publicly accountable; and it has a ultimate or intermediate parent that prepares consolidated financial statements that are available for public use and that meet the full disclosure requirements of all IFRS accounting standards.
Amendments to IFRS 19 - Non-Publicly Reported Subsidiaries: Disclosure (effective for annual periods beginning on or after January 1, 2027; not yet adopted by the EC). The amendments update the disclosure requirements for new and/or amended standards issued between February 28, 2021, and May 1, 2024, reflecting the principles set out in IFRS 19 for developing reduced disclosure requirements. The relevant requirements were included in full in the edition of the standard published in May 2024. The amendments introduce reduced disclosure requirements in the following standards: IFRS 18 - Presentation and Disclosure in Financial Statements; Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures-Contracts for Renewable Energy; IAS 7 Statement of Cash Flows-Vendor Financing Arrangements; Amendments to IAS 12 Income Taxes -International Tax Reform - Illustrative Rules for a Pillar Two Model of International Tax Reform; and Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Absence of Exchange Rates.
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Restatement of Financial Statements to the Presentation Currency of a Hyperinflationary Economy (effective for annual periods beginning on or after January 1, 2027; not yet adopted by the EC). These amendments provide guidance on how to translate the financial statements of entities whose functional currency is not the currency of a hyperinflationary economy into a presentation currency that is a hyperinflationary economy. When an entity restates amounts from a functional currency that is the currency of a non-hyperinflationary economy into a presentation currency that is the currency of a hyperinflationary economy, the entity restates
those amounts, including comparative information, using the closing rate at the date of the most recent statement of financial position; when the entity's presentation currency ceases to be the currency of a hyperinflationary economy and its functional currency continues to be the currency of a non-hyperinflationary economy, the entity applies prospectively (without restating comparative information) the method currently applicable in IAS 21 under similar circumstances.
IFRS 10 (amended) - Consolidated Financial Statements and IAS 28 (amended) -Investments in Associates and Joint Ventures - regarding sales or contributions of assets between an investor and its associates or joint ventures (with a deferred effective date to be determined by the IASB). These amendments address the accounting treatment of sales or contributions of assets between an investor and its associates or joint ventures. They confirm that the accounting treatment depends on whether the assets sold or the non-monetary assets contributed constitute, in substance, a "business" within the meaning of IFRS 3. If these assets, taken as a whole, do not meet the definition of a "business," the investor recognizes a gain or loss up to the percentage corresponding to the share of other unrelated investors in the associate or joint venture. In cases where assets are sold or non-monetary assets are contributed that, taken as a whole, constitute a "business," the investor recognizes the entire gain or loss from the transaction. These changes will be applied prospectively. The IASB has deferred the effective date of these changes indefinitely.
Management is in the process of studying, analyzing, and evaluating the potential effects of the aforementioned new standards, amended standards, and interpretations on the Group's financial statements and accounting policies.
The consolidated annual financial statements have been prepared on a historical cost basis, with the exception of property, plant, and equipment, investment property, financial assets in the form of derivative financial instruments (warrants) and debt securities (bonds) through profit or loss, and financial assets in the form of equity investments through other comprehensive income, which are measured at revalued or fair value, respectively.
Pursuant to the Law on the Introduction of the Euro in the Republic of Bulgaria (LIEB), effective January 1, 2026, the EUR becomes the official currency and legal tender in Bulgaria. The official exchange rate is set at BGN 1.95583 per EUR.
The Group's Bulgarian subsidiaries and associates: Doverie Obedinen Holding AD, Sopharma Properties REIT and Sopharma Buildings REIT, and the joint venture Momina Krepost AD maintain their accounting records in euros (EUR), which they adopt as their functional and presentation currency. Foreign subsidiaries organize their accounting and reporting in accordance with the requirements of the relevant local legislation: Sofarma Ukraine OOO and PAO Vitamini - Ukrainian legislation, Sofarma Trading OOO, Pharmachim EOOD, Pharmonova D.O.O., Sopharmacy D.o.o., and AU Sopharmacy Nova (Pharmacy (AU) Great Pharmasi until October 3, 2025) - Serbian legislation, Sopharma Warsaw SP. Z.O.O. -Polish legislation, TOO Sopharma Kazakhstan - legislation of Kazakhstan, OOO Sopharma Rus - legislation of Russia, and the subsidiaries: SOOO Brititrade, ODO SalusLine, OOO Tabina, OOO Bellerophon, OOO Ne Ska, OOO Fitobel, Alfaaptek OOO and DabradzeyaFarm OOO, the associated companies: Alenfarm-Plus OOO, Galenafarm OOO, Medjel OOO, and SpetsApharm OOO, and the joint venture: Interpharm
Company CJSC-Belarusian law. The companies maintain their accounting records in the respective local currencies-Ukrainian hryvnia (UAH), Serbian dinar (RSD), euro (EUR), Polish zloty (PLN), Kazakhstani tenge (KZT), Russian ruble (RUB), and Belarusian ruble (BYN).
The figures in the consolidated annual financial statements and the notes thereto are presented in thousands of EUR unless otherwise expressly stated, with the EUR being adopted as the Group's presentation currency. The individual financial statements of foreign subsidiaries are translated from local currency into EUR for the purposes of each consolidated financial statement in accordance with the Group's policy (Note 2.5).
Presentation in the consolidated annual financial statements in accordance with IFRS financial reporting standards requires management to make best estimates, accruals, and reasonable assumptions that affect the reported amounts of assets and liabilities, income and expenses, and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements.
These estimates, accruals, and assumptions are based on information available as of the date of the consolidated annual financial statements; therefore, actual future results may differ from them (and in times of financial crisis, uncertainties are more significant).
Items that involve a higher degree of subjective judgment or complexity, or where assumptions and accounting estimates are material to the consolidated financial statements, are disclosed in Note 2.32 and Notes 13, 14, 15, 16, 17, 18, 19, and 29.
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Definitions Parent Company
This is the company that controls one or more other companies in which it has invested. Exercising control means that the investor is exposed to, or has rights to, the variable returns from its interest in the investee, and has the ability to affect the amount of those returns through its power over the investee.
The parent company is Sopharma AD, Bulgaria (Note 1).
SubsidiaryA subsidiary is a company or other form of entity that is controlled directly or indirectly by the parent company.
Subsidiaries are consolidated from the date on which effective control is acquired by the Group and cease to be consolidated from the date on which control is deemed to have ceased and been transferred outside the Group. The full consolidation method is applied for their consolidation.
The subsidiaries are listed in Note 1.2.
Joint ventureA joint venture is a company or other form of enterprise established by a contractual agreement between the parent company, as an investor, and one or more other parties (companies) that engage in a common business activity and over which the controlling partners (including the parent company, which has such status) exercise joint control. Joint control exists when the adoption of strategic financial and operational decisions related to the joint venture is contractually established to require unanimous consent (consensus) among the controlling partners. The latter have rights to the net assets of the joint venture.
The joint venture is included in the Group's consolidated financial statements using the equity method-from the date on which effective joint control is acquired by the controlling partner (specifically, the parent company), and ceases to be consolidated using this method from the date on which the joint venture is converted into a subsidiary, or from the date on which joint control is deemed to have been transferred from the controlling partner to third parties.
Joint ventures are Momina Krepost AD and ZAO Kompaniya Interfarm. (Note 1.2).
AssociateThis is an entity in which the investor (specifically, the parent company) exercises significant influence, but which is neither a subsidiary nor a joint venture of the investor.
Significant influence is the right to participate in decision-making regarding the financial and operating policies of the investee, but does not constitute control or joint control over such policies.
It is typically present when: a) the investor holds, directly or indirectly, shares (stocks) representing 20% to 50% of the capital of the investee (including pursuant to a shareholders' agreement) and, b) in addition, the investor has representation on the governing body of the investee and/or participates in the decision-making process regarding the investee's policy and strategy, and/or there are significant transactions between the investor and the investee.
The associate is included in the Group's consolidated financial statements using the equity method-from the date on which significant influence is acquired by the investor (specifically, the parent company) and ceases to be included using this method either on the date the company becomes a subsidiary or on the date it is deemed that significant influence has been transferred from the investor to third parties.
Associates are Doverie Obedinen Holding AD, Sopharma Properties REIT, Sopharma Buildings REIT, ODO Alenfarm-Plus, OOO Galenafarm, and ODO Medjel. (Note 1.2).
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Principles of Consolidation
The consolidated financial statements include the financial statements of the parent company, subsidiaries, joint ventures, and associates prepared as of December 31, which is the end of the Group's fiscal year. The "economic entity" approach has been applied in the consolidation, and the "proportionate share of net assets" method has been selected for the valuation of non-controlling interests in business combinations and other forms of acquisitions of subsidiaries.
The financial statements of subsidiaries, joint ventures, and associates for consolidation purposes have been prepared for the same reporting period as that of the parent company and in accordance with uniform accounting policies.
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Consolidation of Subsidiaries
In the consolidated financial statements, the financial statements of the included subsidiaries are consolidated using the "full consolidation" method, line by line, applying uniform accounting policies for material items. The parent company's investments are eliminated against its share in the equity of the subsidiaries as of the acquisition date. Intra-group transactions and balances are fully eliminated, including unrealized intra-group gains or losses. The effect of deferred taxes on these consolidation eliminations is also reported. The interests of third-party shareholders in the subsidiaries, other than those of the parent
company's shareholders, are presented separately in the consolidated statement of financial position, the consolidated statement of comprehensive income, and the statement of changes in equity as "non-controlling interests".
Non-controlling interests include: a) the amount of the shares of third-party shareholders (partners) as of the date of initial consolidation in the fair value of all identifiable acquired assets, assumed liabilities, and contingent (crystallized) liabilities of each of the respective subsidiaries, determined (on a pro rata basis) using the proportional method, and b) the change in the amount of these parties' share in the equity of each of the respective subsidiaries from their first consolidation to the end of the current reporting period.
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Acquisition of Subsidiaries
When the Group acquires a subsidiary (entity) in a business combination, the acquisition (purchase and sale) method is used. The consideration transferred includes the fair value, as of the exchange date, of the assets provided, liabilities incurred or assumed, and equity instruments issued by the acquiring entity in exchange for obtaining control of the acquiree. It also includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Direct costs related to the acquisition are recognized as current expenses in the period in which they are incurred, except for costs of issuing debt or equity instruments, which are recognized as a component of equity.
All identifiable assets acquired, liabilities assumed, and contingent liabilities (that have crystallized) in the business combination are initially measured at their fair value as of the exchange date. Any excess of the sum of the consideration transferred (measured at fair value), the amount of the non-controlling interest in the acquiree, and, in the case of a step acquisition, the fair value at the acquisition date of the previously held equity interest in the acquiree, over the identifiable assets acquired and liabilities assumed by the acquiring entity, is treated and recognized as goodwill. If the acquiring AD's share of the fair value of the net identifiable assets acquired exceeds the cost of the business combination, this excess is recognized immediately in the Group's consolidated statement of comprehensive income under "gains/(losses) on acquisition of/(disposal of) subsidiaries." Any non-controlling interest in a business combination is accounted for using the "proportionate share of net assets" method of the acquiree.
When the business combination involving the acquisition of a subsidiary is carried out in stages, on the acquisition date all prior investments held by the acquirer are remeasured to fair value, with the resulting effects of this remeasurement recognized in the Group's current profit or loss, under "financial income" and "financial expenses," or "gains/(losses) from associates and joint ventures," and all previously recognized effects in other components of comprehensive income are reclassified.
The Group applies provisional accounting for items arising from business combinations (acquisitions) when the initial accounting is incomplete at the end of the reporting period in which the business combination occurred. This provisional recognition is adjusted during the valuation period, or additional assets and liabilities are recognized to reflect new information regarding facts and circumstances that existed as of the acquisition date. Adjustments made during the measurement period are recognized retrospectively, and comparative information is restated as of the acquisition date.
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Sale of Subsidiaries
Upon the sale or other form of loss (transfer) of control over a subsidiary:
The assets and liabilities (including any goodwill) of the subsidiary are derecognized at their carrying amounts as of the date of loss of control;
The non-controlling interest in that subsidiary is derecognized at its carrying amount in the consolidated statement of financial position as of the date of loss of control, including all components of other comprehensive income related thereto;
The consideration received is recognized at fair value from the transaction, event, or operation that resulted in the loss of control;
All components of equity representing unrealized gains or losses are reclassified to "profit or loss for the year" or transferred directly to retained earnings, in accordance with the requirements of the relevant IFRSs governing these components of equity;
Any resulting difference is recognized as "gain or loss on disposal (sale) of a subsidiary" in the
consolidated statement of comprehensive income attributable to the parent company.
The remaining shares held, constituting investments in associates, joint ventures, or other long-term equity investments, are initially measured at fair value as of the date of acquisition and subsequently measured in accordance with the Group's accounting policies (Notes 2.13 and 2.14).
The purchase method is also applied to business combinations and/or restructurings of entities under common control with respect to Group entities, provided that these constitute direct acquisitions from the parent company's perspective.
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Transactions with Non-Controlling Interests
Transactions with non-controlling interests are treated by the Group as transactions with parties holding instruments of the Group's total equity. The effects of sales of shares in the parent company, without loss of control, to holders of non-controlling interests are not treated as components of the Group's current profit or loss, but as movements directly into its equity components, typically to the "retained earnings" component. Conversely, in the case of purchases by the parent company, without acquiring control, of additional shares from non-controlling interest holders, any difference between the amount paid and the corresponding acquired share of the carrying amount of the subsidiary's net assets is also recognized directly in the consolidated statement of equity, usually in the "retained earnings" component.
When the Group ceases to have control, joint control, or significant influence, any remaining minority interest in the equity of the respective entity is remeasured to fair value, with the difference to the carrying amount recognized in current profit or loss, and, accordingly, all amounts previously recognized in other components of comprehensive income are accounted for as if the transaction involved a direct disposal of all components related to the initial investment (in the subsidiary, joint venture, or associate).
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Consolidation of Associates and Joint Ventures
The equity method is applied for the inclusion of associates and joint ventures in the consolidated financial statements, under which the parent company's investment in them is initially recognized at cost (acquisition price), and is subsequently restated to reflect changes in the investor's (specifically, the parent company's) share of the net assets of the associates and joint ventures following the acquisition. The Group's
investment in associates and joint ventures also includes the goodwill identified upon their acquisition, net of any recognized impairment.
The post-acquisition profit or loss for the Group (through the parent company) from associates and joint ventures, for the relevant reporting period, represents its share in their net financial results (after taxes) from their operations for that period, which share is recognized and presented on a separate line in the consolidated statement of comprehensive income. Similarly, the Group's share of post-acquisition changes in the other components of comprehensive income of associates and joint ventures is also recognized and presented as a movement in other components of comprehensive income in the consolidated statement of comprehensive income, and in the Group's consolidated reserves in the statement of changes in equity, respectively. The Group recognizes its share of losses of associates and joint ventures up to the amount of its investment, including internal loans granted to them, unless it has assumed specific obligations or payments on behalf of the associate or joint venture.
Intra-group transactions between the Group and its associates and joint ventures are not eliminated. Unrealized gains or losses from transactions between them are eliminated to the extent of the Group's ownership interest in the associates and joint ventures, including an impairment test in cases of loss. The effect of deferred taxes arising from these consolidation procedures is also recognized.
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Consolidation of Subsidiaries
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Comparative Information
The Group presents comparative information in these consolidated financial statements for one prior year. Where necessary, comparative data is reclassified (and restated) to achieve comparability with changes in presentation in the current year.
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Functional currency and recognition of foreign exchange differences
The functional currency of the Group's companies in Bulgaria and the Group's presentation currency
as of January 1, 2026, is EUR.
Upon initial recognition, a transaction in a foreign currency is recorded in the functional currency by applying the exchange rate at the time of the transaction or operation to the amount in the foreign currency. Cash, receivables, and liabilities, as monetary items denominated in foreign currency, are reported in the functional currency using the exchange rate published by the Bulgarian National Bank (BNB) for the last business day of the respective month. As of December 31, they are valued in EUR using the BNB's closing exchange rate.
Non-monetary items in the consolidated statement of financial position, initially denominated in foreign currency, are reported in the functional currency using the historical exchange rate as of the transaction date and are not subsequently remeasured at the closing rate.
The effects of exchange rate differences arising from the settlement of transactions in foreign currency, or the recognition of foreign currency transactions at rates different from those at which they were initially recognized are included in the consolidated statement of comprehensive income at the time they arise, treated as "other operating income/(losses)" and presented on a net basis.
The functional currency of the companies in Poland (Sopharma Warsaw Sp. z o.o.) is the Polish zloty; for the subsidiary TOO Sopharma Kazakhstan-the Kazakhstani tenge; and for the subsidiaries in Ukraine (PAO Vitamini, OOO Sopharma Ukraine)-the Ukrainian hryvnia; for the subsidiaries in Serbia (Sopharma Trading D.o.o., Farmachim EOOD, Farmanova D.O.O., Sopharmacy D.o.o., and AU
Sopharmacy Nova (Pharmacy Establishment (AU) Sopharmacy until October 3, 2025)) - Serbian RSD; for the subsidiary OOO Sopharma Rus - Russian ruble; for the subsidiaries in Belarus (SOOO Brititrade, ODO SalusLine, OOO Tabina, OOO Bellerophon, OOO Ne Ska, OOO Fitobel, OOO AlfaApteka, OOO DabradzeyaFarm, and BOOO SpetsApharmacy) - Belarusian ruble.
For the purposes of each consolidated financial statement, the currency of the financial statements of foreign subsidiaries is translated: from the functional currency of the respective foreign subsidiary into the presentation currency (EUR) adopted in the consolidated financial statements, as follows:
all assets and liabilities are translated into the group currency at the closing exchange rate of the local currency against it as of March 31 or the date of the company's discharge;
all income and expense items are translated into the group currency at the average exchange rate of the local currency against it for the reporting period (Notes 2.6 and 2.7);
all exchange differences arising from the translations are recognized and presented as a separate component of equity in the consolidated statement of financial position-"translation reserve in the presentation currency of foreign operations," and
exchange differences arising from the currency translation of the net investment in foreign subsidiaries, together with loans and other currency instruments designated as hedges of those investments, are recognized directly in equity.
Upon disposal (sale) of a foreign operation (company), the cumulative amount of exchange differences that were recognized directly as a separate component of equity is recognized as part of profit or loss in the consolidated statement of comprehensive income under the line item "gains /(losses) from the acquisition and disposal of subsidiaries, net," resulting from the disposal (sale).
Goodwill and fair value adjustments arising from the acquisition of a foreign subsidiary are treated similarly to the assets and liabilities of that subsidiary and are translated into the presentation currency at the closing rate.
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Revenue
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Revenue Recognition from Contracts with Customers
The Group's ordinary revenue is derived from the activities disclosed in Note 1.2.
Revenue is recognized when control over the goods and/or services promised in the contract with the customer is transferred to the customer. Control is transferred to the customer upon fulfillment of the performance obligations under the contract through the transfer of the promised goods and/or the provision of the promised services.
Assessment of a contract with a customer
A contract with a customer exists only when, upon its inception, it: (a) has a commercial substance and purpose; (b) the parties have agreed to it (orally, in writing, or based on "established and generally accepted business practice") and have committed to performing it; c) the rights of each party can be identified; d) the terms of payment can be identified; and e) it is probable that the consideration to which the Group is entitled upon fulfilling its performance obligations will be received.
When assessing collectability, all relevant facts and circumstances of the transaction are taken into account, including past experience, customary business practices, published rules, and statements made by Group companies, as well as collateral and enforcement options.
A contract for which any of the above criteria has not yet been met is subject to reassessment at each reporting period. Fees received under such a contract are recognized as a liability (contractual liability) in the statement of financial position until: a) all criteria for recognizing a contract with a customer are met;
b) the Group has fulfilled its performance obligations and all or substantially all of the consideration (which is non-refundable) has been received; and/or c) the contract has been terminated and the consideration received is non-refundable.
When initially assessing its contracts with customers, the Group performs additional analysis and judgment as to whether two or more contracts should be considered in their combination and accounted for as a single contract, and, respectively, whether the promised goods and/or services in each individual and/or combined contract should be accounted for as one or more performance obligations.
Any promise to transfer goods and/or services that are distinguishable (in and of themselves and in the context of the contract) is recognized as a single performance obligation.
The Group recognizes revenue for each individual performance obligation at the level of the individual contract with the customer by analyzing the nature, timing, and terms of each specific contract. For contracts with similar characteristics, revenue is recognized on a portfolio basis only if grouping them into a portfolio would not have a materially different effect on the financial statements.
When another (third) party is involved in the fulfillment of performance obligations, the Group determines whether it acts as a principal or an agent by assessing the nature of its promise to the customer: to provide the specified goods or services itself (principal) or to arrange for another party to provide them (agent).
The Group is a principal and recognizes revenue as the gross amount of the consideration if it controls the promised goods and/or services before transferring them to the customer. If, however, the Group does not obtain control over the promised goods and/or services and its obligation is solely to arrange for a third party to provide those goods and/or services, then the Group is an agent and recognizes revenue from the transaction in the amount of the net amount it retains for the services provided as an agent.
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Measurement/(valuation) of revenue from contracts with customers
Revenue is measured based on the transaction price determined for each contract.
The transaction price is the amount of consideration to which the Group expects to be entitled, excluding amounts collected on behalf of third parties. In determining the transaction price, the Group considers the terms of the contract and its usual business practices, including the impact of variable consideration, the presence of a significant financial component, non-monetary consideration, and consideration due to the customer (if any). For contracts with more than one performance obligation, the transaction price is allocated to each performance obligation based on the individual selling prices of each good and/or service, determined using one of the methods permitted by IFRS 15, with priority given to the "observable selling prices" method.
A change in the scope or price (or both) of the contract is accounted for as a separate contract and/or as part of the existing contract, depending on whether the change involves the addition of goods and/or services that are distinguishable and on the price determined for them. Depending on this: a) the modification is accounted for as a separate contract if the scope of the contract is expanded due to the addition of goods and/or services that are distinguishable, and the change in the contract price reflects the individual selling prices of the added goods and/or services;
the modification is accounted for as a termination of the existing contract and the conclusion of a new contract (prospective application) if the remaining goods and/or services are separable from those transferred prior to the modification, but the change in the contract price does not reflect the individual selling prices of the added goods and/or services;
the modification is accounted for as part of the existing contract (cumulative adjustment) if the remaining goods and/or services are not distinguishable from those transferred prior to the modification and are therefore part of a single performance obligation that has been partially settled.
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Performance obligations under contracts with customers
Product sales
Wholesale sales of active pharmaceutical ingredients and finished dosage forms are conducted domestically and internationally, both according to the Group's own manufacturing specifications (technology) and according to the customer's specifications (technology).
Sales of products according to the Group's own specificationsWhen selling products according to the Group's own specifications, control is transferred to the customer at a precisely defined point in time.
For domestic sales, this typically occurs upon delivery of the products and transfer of physical possession to the customer, when the customer can dispose of the goods, manage their use, and essentially receive all other benefits.
For exports, the determination of the point at which the customer obtains control over the manufactured products is based on the agreed terms of sale under Incoterms.
Sales of products to customer specificationsFor products manufactured to customer specifications, the Group is typically subject to legal and contractual restrictions on diverting them to other uses (sale to a third party), and they have no alternative use. The method for transferring control in these cases is determined specifically for each customer contract (at the individual contract level). To this end, it is determined whether the Group has the right to receive payment for the work performed to date, which at a minimum compensates for the costs incurred plus a reasonable margin, in the event that the contract is terminated for reasons other than non-performance by the Group (legally enforceable right to payment).
If the Group has a legally enforceable right to payment for the specific contract, revenue is recognized over time, and a method that accounts for the results achieved is used to measure progress on the contract (stage of completion). This method is determined to be the most appropriate for measuring progress, as the results achieved best describe the Group's activity toward the full satisfaction of the performance
obligation. Progress is measured based on the units produced relative to the total units ordered by the customer. Estimates of revenue, expenses, and/or the degree of progress toward fulfilling obligations are reviewed at the end of each reporting period, including in the event of a change in circumstances and/or the occurrence of new ones. Any subsequent increase or decrease in expected revenue and/or expenses is recognized in profit or loss in the period in which the circumstances leading to the reassessment become known to management.
If the Group has no legally enforceable right to payment, revenue is recognized at a specific point in time when control over the goods sold is transferred to the customer: upon delivery of the goods and physical possession thereof to the customer (for domestic sales) and in accordance with the terms of sale under INCOTERMS (for foreign sales).
Sales of Pharmaceutical and Medical Goods
Sales of pharmaceutical and medical goods by the Group's distribution companies are made to
customers-pharmacies, hospitals, and wholesalers (wholesale trade)-in Bulgaria and abroad.
WholesaleIn wholesale transactions, control over the goods sold is deemed to transfer to the customer at a specific point in time. This typically occurs upon delivery of the goods and transfer of physical possession to the customer, when the customer can dispose of the goods, manage their use, and essentially receive all other benefits.
RetailIn retail sales, control over the goods sold is transferred to the customer upon delivery to the customer.
Customer loyalty programs
The Group maintains a loyalty program that allows customers holding a club card to accumulate points with every purchase. Accumulated points can be redeemed for products participating in the program at no cost to the customer within a period specified in the program terms. The Group's management has determined that loyalty points provide customers with a substantive right that they would not receive without the initial purchase. Therefore, the granting of points constitutes a separate performance obligation. The transaction price paid by the customer upon the initial purchase is allocated between the goods sold and the loyalty points that the Group expects to be claimed and redeemed, based on the respective individual selling prices. The standalone selling price per point reflects the selling price of the products the customer is entitled to receive in exchange for the accumulated points, adjusted for the probability that the points will be redeemed, determined based on information regarding points used (historical experience). The standalone selling price of the goods sold is determined based on the price list in effect at the time of the initial sale. Obligations under the loyalty program are presented as a contractual liability in the consolidated statement of financial position. Revenue is recognized when loyalty points are redeemed or when their redemption period expires. The Group reviews its estimate of the points that will be redeemed and settled at the end of each reporting period and, if necessary, adjusts the recognized liability (contractual liability) and the recognized revenue, respectively, at the time of the change (reassessment) using the cumulative catch-up method.
Sales of Medical EquipmentSales of medical equipment typically include delivery, installation, commissioning, training, and warranty service, with the selling price being a lump sum for the specific contract and/or device. Revenue from the sale of medical equipment is recognized at the individual contract level, with an assessment of whether the promised goods and/or services constitute separate performance obligations.
This assessment is made based on the timing of the transfer of control over the medical equipment and the interdependencies among the individual components of the contract.
Typically, control over the medical equipment (devices) is transferred to the customer at a specific point in time, upon delivery of the equipment (devices) to the agreed destination and the transfer of physical possession to the customer. From that point on, the Group transfers all risks and rewards associated with the medical equipment (devices) covered by the contract with the customer, and the customer has the ability to direct and control its use.
Installation, commissioning, and training services sold together with the equipment are typically performed after its delivery and are relatively independent. These services are accounted for as a separate performance obligation because: a) they may be performed by another supplier;
b) in most cases, the services are short-term and non-specific; c) they do not modify the delivered equipment (apparatus) and are not interrelated or integrated with it. Therefore, it is assessed that in these cases, control over installation, commissioning, and training services transfers during the period of their provision, as they are performed on an asset controlled by the customer, and the customer receives and consumes the benefits from them concurrently with the performance of the services. Revenue from services rendered is recognized over time, and a method based on an assessment of the results achieved is used to measure progress on the contract (stage of completion).
This method is determined to be the most appropriate for measuring progress, as it most adequately describes the pattern of transfer of control and fulfillment of obligations, and accordingly most accurately reflects the level of all uncompleted activities.
Warranty ServiceThe warranty service offered typically includes a standard warranty clause stating that the medical equipment (devices) sold meets the agreed specifications and standard quality conditions within the standard warranty period (usually 12 months) and is covered by the manufacturer.
Transportation for the Sale of Products and GoodsTypically, for sales abroad, the Group is obligated to transport the goods to the agreed destination, with transportation organized by the Group and the cost of transportation included (calculated) in the sales price. Depending on the terms agreed with the customer, the transportation service may also be performed after control over the sold products has been transferred to the customer. Until control over the products is transferred, the sale of products and the transportation service are recognized as a single performance obligation, as they are part of an integrated service.
The transportation service provided after the transfer of control over the goods is recognized as a separate performance obligation, since the transportation may be performed by another supplier (i.e., the
customer may use the goods sold with other readily available resources) and the transportation service does not modify or alter the goods sold in any way.
In this case, the consideration to which the Group expects to be entitled (the transaction price) is allocated among the individual performance obligations based on their respective selling prices. The individual selling price of the products sold is determined in accordance with the price list in effect as of the transaction date, and for the transportation service, the individual selling price is determined approximately using the cost-plus method.
Transportation service providers-subcontractors-are used to perform the transportation service. The Group has determined that it controls the specific services before they are provided to the customer and therefore acts as a principal because:
a) it bears the primary responsibility for ensuring that the services are performed and are acceptable to the customer (i.e., the Group is responsible for fulfilling the contractual promise, regardless of whether the Group performs the services or engages a third-party service provider to perform them; and b) it negotiates the price of the services independently and without interference from the customer.
Revenue from the sale of a transportation service is recognized over time, as the work performed to date does not need to be repeated if another party is to perform the remaining portion of the work, and therefore the customer receives and consumes the benefits concurrently with the performance of the service. To measure progress on the contract (stage of completion), a method based on resources expended is used. This method is determined to be the most appropriate for measuring progress, as it best describes the Group's activities in transferring control and fulfilling obligations and, accordingly, most accurately reflects the level of fulfillment of obligations, insofar as there is a direct relationship between the Group's efforts (expenses incurred) and the delivery of the service to the customer. Progress is measured based on expenses incurred relative to total planned expenses for contract performance.
"Bill and Hold" AgreementsIn certain cases involving the wholesale sale of goods, the goods sold remain in the Group's physical possession. The Group has analyzed these arrangements and determined that, although the customer does not obtain physical possession of the goods, the customer typically has control over them because: a) the retention is at the customer's request; b) the goods can be identified as belonging to the customer; c) the goods are ready for immediate shipment at the customer's request; d) the Group is unable to use the goods or divert them to other customers; and e) a separate fee is agreed upon for the storage service. In these cases, the delivery of goods and the provision of the safekeeping service are recognized as separate performance obligations. Accordingly: (a) control over the goods sold is transferred to the customer at a specific point in time when the goods can be identified as belonging to the customer and the customer accordingly has legal title to them; b) the performance obligation for the provision of custody services is satisfied over time, as those services are provided.
Sales of Services
The services provided by the Group include: storage (pre-distribution) of the customer's goods, subscription-based post-warranty service for medical equipment, medical representation, and others. Revenue from services is presented as other income in the statement of comprehensive income, to the extent that it is not part of the Group's core business.
Post-warranty (service) maintenanceA Group company provides post-warranty (service) maintenance to its customers on a subscription basis. Post-warranty service contracts typically have a duration of up to 2 years. The fee is fixed and determined on an annual basis and/or for the entire term of the contract, and is allocated equally on a monthly basis. Services rendered are typically invoiced monthly, and the payment term is 30 to 60 days from the date the invoice is issued to the client.
The post-warranty service includes various tasks/activities of a continuous and/or recurring nature that are distinguishable and form part of a single integrated service. They constitute a series of distinguishable services and therefore constitute a single performance obligation because: a) the integrated maintenance service includes multiple distinguishable time periods (typically one month); b) the services are identical in substance, as the customer derives a continuous benefit from them in each individual time period (each month), even if the tasks performed differ in nature and quantity; c) control is transferred over time, as the customer receives and consumes the service simultaneously with its provision, and it is not necessary for another entity to essentially repeat the work that the Group company has performed as of the relevant date if that other entity is to fulfill the remaining portion of the obligation.
Revenue is recognized over time, with progress on the contract (stage of completion) measured on a time-elapsed basis (on a straight-line basis-monthly). This method is determined to be the most appropriate for measuring progress, as the services are provided monthly and are part of a series and, therefore, best describe the Group company's activity in transferring control and fulfilling obligations.
Other ServicesFor other services performed by the Group, control is transferred to the customer at the time of their provision, as the customer simultaneously receives and consumes the benefits of the Group's activities. Revenue from sales is recognized over time by measuring the extent to which the Group has fulfilled its obligations (stage of completion). To measure progress (stage of completion), the Group uses the output method, based on the quantity of services provided.
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Refund obligations under contracts with customers
Refund liabilities include the Group's obligation to refund part or all of the consideration received (or receivable) from the customer under contracts with refund rights-for expected retrospective discounts, rebates, and/or volume bonuses.
Initially, the refund liability is measured at the amount that the Group does not expect to be entitled to and expects to refund to the customer. At the end of each reporting period, the Group updates the measurement of refund liabilities in line with the transaction price and recognized revenue.
Refund liabilities under customer contracts are presented under "Other current liabilities" in the
statement of financial position.
- Transaction price and payment terms
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Revenue Recognition from Contracts with Customers
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Basis for the Preparation of the Consolidated Financial Statements
Manufactured goods and pharmaceutical and medical products
The selling prices for the products (manufactured goods and merchandise) sold by the Group are fixed according to a general and/or customer price list and are determined individually for each specific
product. When determining the transaction price, the Group also takes into account the various forms of variable remuneration and other amounts (remuneration) due to the customer.
Variable remuneration
Variable consideration is included in the transaction price only to the extent that it is highly probable that there will be no material adjustment to the amount of cumulative revenue recognized. The forms of variable consideration applicable to the Group include:
Volume discounts: A form of additional incentive-based retrospective trade discounts granted to the customer for achieving a predetermined monthly, quarterly, and/or annual turnover, defined as a single threshold and/or as a progressive bonus scheme. When measuring variable remuneration, the Group determines the customer's expected turnover using the most likely value method. The discounts granted are offset against amounts due from the customer.
Price discounts from the general price list: In accordance with the adopted pricing policy for wholesale sales, the selling price listed in the general price list is reduced by the standard discount applicable to the respective item. The discount amount for each customer is determined by the turnover agreed upon for a specific period relative to the customer's total potential turnover. These price discounts are provided to the customer with each sale and/or at the end of each month. In the event that the customer fails to achieve the turnover specified in the contract and does not make up the difference during the following period, the Group is entitled to claim a penalty for non-performance, determined as a percentage of the unmet portion of the agreed monetary amount of turnover.
Price protection: for sales on the Bulgarian market, the Group is committed, in the event of a price reduction imposed by a state regulatory authority, to compensate the buyer and/or its customers for products purchased from the Group at a higher price that have not been sold to end customers. The payment of this compensation depends on government policy regarding the regulation of drug prices and is beyond the Group's control.
Compensation for Hidden Defects: The customer may file claims for hidden defects (quality claims) throughout the entire shelf life of the goods sold, which may range from one to five years. Quality claims are settled by providing new, serviceable goods or by refunding the amount paid by the customer. When determining the compensation for hidden defects due at the end of the reporting period, the Group takes into account the quality assurance system it has implemented and its accumulated experience.
Penalties payable to the customer: in the event of non-performance of contractual obligations by the Group, typically in connection with failure to meet the agreed delivery deadline and/or in connection with the remaining shelf life of the delivered products (manufactured goods and merchandise). These are included in a reduction of the transaction price only if their payment is highly probable. The Group's experience indicates that, historically, agreements have been honored, and the Group has not recognized any liabilities for the payment of penalties.
Right of return: Some contracts for the sale of goods entitle the customer to return the goods within a specified period. The Group accounts for the right of return as a form of variable consideration and
recognizes revenue from the sale only to the extent of the consideration to which it is reasonably certain it is entitled (taking into account the goods expected to be returned).
In determining what portion of the goods sold is expected to be returned, the Group uses historical data on goods returned by customers over the past year.
Penalties payable by the customer: variable consideration in the form of penalties due to late payment by the customer. The receipt of these amounts depends on the customer's actions and is beyond the Group's control. They are included as part of the transaction price only when the uncertainty regarding their receipt has been resolved.
The inclusion of penalties (owed by and to the customer) as part of the transaction price is assessed for each individual contract and is subject to review at the end of each reporting period.
Expected variable consideration in the form of various discounts, penalties, compensation, and return rights is determined and measured based on accumulated historical trading experience with customers and is recognized as an adjustment for the purposes of the transaction price and, accordingly, revenue (as an "increase" or "decrease") only to the extent that it is highly probable that there will be no material reversal in the amount of revenue recognized cumulatively, including due to the existence of measurement restrictions. All subsequent changes in the amount of variable remuneration are recognized as an adjustment to revenue (as an increase or decrease) on the date of the change and/or resolution of the uncertainty. At the end of each reporting period, the Group updates the transaction price, including whether the estimate contains limitations, so as to present a true and fair view of the circumstances existing and occurring during the reporting period. When estimating variable consideration, the Group uses the most likely value method.
Discounts accrued but not settled at the end of the reporting period, for which the customer does not yet have an unconditional right to receive, are presented as a liability to be refunded in the statement of financial position.
Remuneration due to the customer
Consideration payable to the customer includes amounts that Group companies pay and/or have promised to pay to the customer. It is included as a component of the transaction price, unless the payment to the customer is in exchange for clearly distinguishable (separate) goods and/or services that the customer transfers and/or provides to the Group companies, and the fair value of those separate goods and/or services does not exceed the amount of the consideration paid by the Group. If the latter is greater than the fair value of the goods and/or services received from the customer, only the excess is included as part of the transaction price. Remuneration paid to the customer is recognized as assets under contracts with customers and is included as part of the transaction price and, accordingly, as a reduction in revenue from contracts with customers upon the transfer of control over the goods sold or when the Group commits to pay, whichever occurs later.
Significant financial component
For wholesale sales, the standard credit period is 30 to 270 days after delivery of the goods. For some sales, payment may be partially made in advance, with advance payments refunded if the contract is canceled. Advance payments received from customers are presented in the statement of financial position as liabilities under contracts with customers.