Bulgarian Economy on Path of Recovery - Study

The total revenues of the top 100 Bulgarian companies amount to BGN 1.1 B in 2011, compared to BGN 312 M in 2010. File photo

Bulgaria's economy is showing some "shy" signs of recovery, according to the Chairman of the Bulgarian Chamber of Trade and Industry, (BCTI), Tsvetan Simeonov.

Simeonov spoke at the presentation of the Ranking of the Top 100 Bulgarian Companies for 2011. The Ranking is held for the 14th consecutive year.

Sales revenues of the best Bulgarian firms have increased by 252% in 2011 on the backdrop of an economy growth of 1.7%. The total revenues of these businesses amount to BGN 1.1 B in 2011, compared to BGN 312 M in 2010.

The average profit has increased by 886%, reaching BGN 651 000.

Regarding profitability, the companies report an average profit of BGN 112 on BGN 100 of capital and a profit of BGN 50 on BGN 100 of sales revenues. In the latter, the average profit of a Bulgarian company in 2011 has been BGN 1.2 M.

BCTI have also made a ranking of companies, which operated at a loss in 2010, but have been profitable in 2011. A profit of BGN 104 M in 2011 is reported based on a BGN 83 M loss of the top 50 businesses in having the largest difference between 2010 loss and 2011 profit. The average profit in 2011 is BGN 1.6 M with an average 2010 loss of BGN 2 M.

The best companies in the ranking are concentrated in the capital Sofia, followed by the cities of Plovdiv, Ruse and Stara Zagora.

Very small businesses with a turnover of up to BGN 3.9 M represent 73% of the companies in the ranking, followed by small businesses (17%) and medium ones (9%).

In addition to the above data, Simeon further informed that one company refused to participate in the ranking without citing any reasons, adding they could involve fears of racket or tax collectors.

According to him, the improved company results in 2011 are a sign the economy is alive and functioning.

The selection criteria for the ranking include changes in the net sales revenues, profit on BGN 100 of own capital, profit on BGN 100 of sales revenues, with an additional condition for the companies to have ended 2011 with a profit and sales revenues of over BGN 100 000.

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