LEISURE INDUSTRY COMPANIES REPORT THE HIGHEST PROFIT GROWTH
The financial results of the public companies for the first nine months of 2002 have been marked by steep fluctuations. The resorts, for example, reported a tangible growth of sales. The proceeds from sales of Sunny Beach seaside resort increased 5-fold from last year and its profit rose from BGN381,000 to BGN25MN. The main reason for that, of course, is the privatisation of several hotels of the company (in the beginning of the year the deals were signed for the hotels Iskar, Saturn and Chinar, and for the Open-air Theatre).The profit of Sts. Constantine and Helena, whose stocks are among the most attractive offers for sale against compensation instruments, jumped by 258.97 per cent. And the company's turnover increased by 166 per cent, which makes the players on the stock exchange impatiently expect the launch on the capital market of 72% of its shares.Albena AD also met with good financial results the decision to offer on the stock exchange the residual 2.47-percent state-owned stake. The company succeeded to overcome the drop of its profit in the first half of 2002 and reported a 5.5-percent growth for the first three quarters of this year as compared to the same period of 2001. In the same time, the resort's turnover rose slightly, reaching only BGN65.8MN.The other company from the list of firms whose stocks shall be sold against compensation instruments - Golden Sands - reported a profit of BGN5,357,000 for the first nine months of 2002, up 304% from the same period of last year. However, the resort's liabilities under trade loans (exceeding BGN8MN) have increased considerably. This is connected with the agreements with foreign tour operators for refurbishing of hotels.In the same period less proceeds entered Balkancar Record - a leader in a pool for sale of stocks against compensation instruments of payment. The enterprise's profit dropped by 88.54% and was only BGN40,000.The Rousse-based company Orgachim attracts attention by the steep improvement of its financial performance. It closed the first nine months of 2002 with 8.5-fold higher profit than in the same period of 2001. However, it should not be forgotten that the company has posted losses as well, which will eat up the profit in the year-end. Nevertheless, the development of Orgachim is impressive on the background of the other firms in the branch. The profit of Neochim, for instance, dropped by more than 19 per cent.Pirinsko Pivo is the top performer in the brewing industry. Its profit rose 167.40% from last year and its sales increased by 27%, reaching BGN17.7MN. This means there will be a considerable redistribution of the local breweries' market shares. The Sofia-based Ariana (which is within the portfolio of Brewinvest) has reported much modest results. The brewery decreased both its sales and profit, which is 61.36% down from the first nine months of 2001.The pharmaceutical manufacturer Sopharma cannot boast of much better results. The enterprise's sales rose, but its profit dropped by almost 34 per cent. This is explained by the drastic increase of the company's receivables over the last months (almost BGN32MN up from end-September 2001). The other companies (included in the stock exchange index) are in a considerably more advantageous position than last year. Bulgartabac Holding increased its profit to BGN22MN, while in the first nine months of 2001 its was BGN10.6MN. It is interesting that the holding reports a serious increase of its receivables, but a more accurate picture could be provided by the company's consolidated financial report. The biggest enterprise in the group - Blagoevgrad BT - reports a decrease of its profit from BGN20.9MN to BGN18.4MN. But Sofia BT compensates that drop. The profit of the cigarette factory for the first three quarters of this year increased to BGN10.5MN, up from BGN5.7MN in the same period of 2001.The top local fuel distributor Petrol AD is slightly increasing its profit, but its sales have dropped down by more than a third and were worth BGN290MN in end-September, 2002. A considerable part of the company's stocks of petrol have remained unsold.Sviloza, which increased 5-fold its capital, showed a steep improvement of its performance. It ended the first nine months of 2001 with a loss of BGN5,568,000, but reported a profit of BGN4,495,000 for the same period of this year. As the BANKER weekly has already written, Sviloza became a participant in the first auction for trading rights on the stock exchange.Alen Mak's financial performance was poor. After reporting a small profit of BGN247,000 for the first nine months of 2001, the cosmetics producer was BGN3,376,000 in the red for the same period of this year. But things might have improved, having in mind that the company increased 25 times its equity capital a month ago and its sales went up 13 per cent.