BULGARIA'S EXPORT-ORIENTED COMPANIES RECORD BUMPER SALES GROWTH IN H1 2011

Bulgaria's export-oriented companies recorded robust sales and strong profits in the first half of 2011, their consolidated reports show.

Along with the rise in sales, expenses also saw an increase in the six-month period. The higher costs, however, did not hamper first-half earnings, with some companies' profits growing much higher than in the first half of 2010.

Export-oriented firms were the worst affected by the onset of the financial crisis, but in late 2009 and more notably in 2010 their sales started to recover. At the same time, a significant number of companies oriented to local consumers are still suffering stagnation.

Some companies are already shifting their focus towards the domestic market, like fertiliser manufacturer Neochim, which trimmed the share of its exports to 46 per cent of its total sales from over 50 per cent in 2010. The company returned to a net profit of 17 million leva in the first half of the year from a loss of 3.2 million in 2010.

Local fibreboard producer Fazerles and hydraulic equipment manufacturer M+S Hydraulic also enjoyed higher profits thanks to strong revenue growth. Fazerles' net profit ballooned 27 times to 810 000 leva in the period.

Kitchen equipment manufacturer Torgoterm was also among the firms to stage a rise in sales, which was however more modest than that of other export-oriented companies. The company sells more than 90 per cent of its production abroad.

Car battery maker Monbat also reported modest figures in the first half of the year after registering significant growth rates in 2010 when the recovery on the international markets had a stronger impact on its performance.

According to official statistics data, Bulgaria's exports rose by about 40 per cent year-on-year in the first six months of 2011.