It has been less than a year since Todoroff (

) was listed on the local stock exchange. On April 17 the company filed an SPO, placing 1.1 mln shares at 2 leva. Oversubscription was 4.45 times. Todoroff's core activity includes wine and spirits production, agricultural production, commercial representation and intermediation, tourist services, etc.

Main shareholder is Ivan Todoroff, controlling 51.03% of the capital, according to September 30 data.

The company's sales revenues for the Jan – Sept period amount to 1.795 mln leva (approximately 917,768 euros), which is a 100% up from the respective period a year ago. Of it, 1.45 mln leva comes from production sales, 43,000 leva from sales of goods, 105,000 leva from sales of services, and 199,000 from other activities.

Revenues from services have increased considerably in the first nine months of the year, compared with 19,000 leva posted for the respective period in 2006. This is largely attributed to the opening of the Todoroff Hotel.

Export grew 42.5% y/y, which is mainly due to rising sales in Denmark, The Netherlands, Slovenia, Romania and Turkey, as well as on the traditional markets – USA and Germany.

The company posted consolidated profit in the amount of 109,000 leva for the first nine months of the year, compared with a negative result of 97,000 leva last year. The strong Q4 last year allowed the company to end 2006 with profit of 92,000 leva.


20032004200530 Sept '0630 Sept '07% DifferenceAssets – thousand BGN1832238142236955828919,18%Core capital – thousand BGN501000195434003400N/ARevenues – thousand BGN624118614058971800100,67%Net financial result in thousand BGN-487822-97109N/ANumber of shares50100020003,400*3400
Net profit/loss per share-0,960,080,01-0,030,03
Profit before taxes and interest (thousand BGN)416813153109105,66%

*Information covers previous years.

It was announced in August that Todoroff acquired 100% of the capital of two other enterprises - Poliarts and Vini Art.

Poliarts operates in the filed of tourism and Vini Art, which was renamed Todoroff-Agro following a decision of the District Court Of Plovdiv dated August 6, operates in the sector of agriculture.

Todoroff plans to assign these companies, specialized in their own fields, the task to manage the new hotel and vineyards.

Poliarts will manage the hotel complex, the SPA center and wine cellar, and Todoroff Agro will take care of the vineyards and be responsible for the cultivation of grapes.

In May the company announced that its Cabernet Teres 2005 has been awarded a silver medal at the Mondial de Bruxells. On 19 September it announced that its wines Melot Gallery 2006 and Golf Challenge 2005 have both won silver medals at international competitions.

Cabernet Sauvignon Todoroff Teres 2005 and Merlot Todoroff Teres 2005, as well as Merlot Todoroff Gallery 2005 are included in the prestigious chart Vinalies Internationales -1000 Vins Du Monde.

At the beginning of October, Todoroff announced that one of tits main projects has almost been completed.

Todoroff-Agro, a subsidiary 100% controlled by Todoroff Jsc, is working on a project worth 1,004,548 leva, of which 502,274 leva is provided by SAPARD on a EU program funding the development of agricultural land in Bulgaria.

On October 10 this year the company signed a contract with State Fund Zemedelie, which ensures the funding for the creation of a vineyard, supporting structures on it, and purchases of equipment.

204 decare of the land have newly planted grapes and 314 decare are reconstructed plots. With them, Todoroff will have a total of 1,000 decare of vineyards by 2009. The investments will ensure 100% of the grapes necessary for the production, which, according to Todoroff, will lead to a perfection of quality.


20032004% Difference2005% Difference30 Sept'0630 Sept '06% Difference1. Production5211132117,27%133818,20%859144868,57%Export10414438,46%108-25,00%73104,0342,51%Home Market417988136,93%123024,49%7861343,9770,99%2. Goods87-12,50%928,57%3431333,33%3. services3324-27,27%2816,67%31105238,71%4. Other4618-60,87%2750,00%41994875,00%Total:608118194,24%140218,71%8971795

Q4 is traditionally the strongest period for Todoroff sales, probably because of the Christmas and New Year holidays.

Last year, Q4 sales exceeded those for the entire Jan – Sept period, and significantly boosted revenues.

The company stock, however, so far fails to top the IPO price – 2 leva. There were no transactions on the position yesterday, shares were last traded at 1.95 leva.

The following chart presents more information:

Indicators30 Sept 2007Price on December 61,95Market Capitalization (in mln BGN)6,63Revenue per share (BGN)0,53Profit Per share (BGN)0,03Accounting Value (BGN)1,17P/E* (current)33,5P/S3,68P/B1,66

*This article should not be perceived as recommendation for buying or selling stock.