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Economic slowdown in Bulgaria shows in corporate balance sheets

Author: The Sofia Echo staff Date: Wed, Feb 29 2012 1884 Views
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Bulgaria's economy is slowing down and this is reflected in consolidated balance sheets for the latest quarter, Capital Daily said, quoted by local news agency Focus.

Results are better, but at a slower rate compared to previous quarters.

One of the reasons for this is the increase in costs which leads to a profit-margin contraction.

At the same time, exports are also declining, leading to a fall in profits compared to 2011.

"After the first signs of economic slowdown in Bulgaria’s key foreign-trade partners in the EU, it was logical to see the first signs of slower economic growth in export companies," Boncho Ivanov, Portfolio Manager at UBB Asset Management, said.

Mincho Minchev, Chief Dealer at Investbank, pointed out that results of the individual companies are heavily dependent on the performance in their sector.

Minchev said that industrial, agricultural, and export companies are registering growth, but public construction companies "have deteriorated considerably" and are "on the verge of bankruptcy".

Svetoslava Mitisheva, broker at Bulbrokers, thinks that first-quarter results will be "rather unsatisfactory".

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