IBI-Rating has affirmed the credit rating of bonds of «Optima-Pharm Ltd» JV

IBI-Rating informs on affirming of the credit rating of A series registered interest-bearing unsecured bonds of «Optima-Pharm LTD» JV at uaBBB grade, with outlook revision from «negative» to «evolving». The credit rating has been kept on the Credit Watch List due to the martial law imposed in connection with the invasion of Ukraine by Russian troops, which has a significant negative impact on the country's economic situation and financial stability.

Wholesale trade in medicines and their import, which is carried out by JV «Optima-Pharm LTD», is subject to licensing. A developed network of its own pharmacy warehouses, as well as cooperation with both Ukrainian and foreign manufacturers, determines the Issuer's leading market position - according to the results of 3 months of 2023, JV «Optima-Pharm LTD» ranked first in terms of the volume of medicines supplied to pharmacy chains. At the same time, a significant volume of operations for the import of medicines and the presence of foreign currency debt obligations determine the Issuer's sensitivity to currency risk.

The net income of JV «Optima-Pharm LTD» for 3 months of 2023 amounted to UAH 13.5 billion, which is 9.2% more than in the same period of 2022. The result of the activities of JV «Optima-Pharm LTD» for 3 months of 2023 was a net profit of UAH 939 thousand, which is 2.4 times more compared to the same period in 2022. The company's retained earnings increased to UAH 5.9 billion as of 31.03.2023. The share of equity in the structure of sources of financing of the Issuer's activities increased to 43%. The level of debt burden at the end of March 2023 is estimated as low.

The affirmation of the credit rating with outlook revision from «negative» to «evolving» is due to the Issuer's leading positions in the domestic market of distribution of medicines; the presence of a developed network of its own pharmacy warehouses and points of sale of medicines throughout Ukraine; high performance indicators and profitable current activities. The Rating agency also notes the low level of debt burden and systematic reinvestment of profits for the development of the company. At the same time, the company remains dependent on state regulation of the industry, sensitive to fluctuations in exchange rates, due to a significant volume of import operations and foreign currency debt obligations. Additionally, the Rating agency takes into account the sensitivity to operational and other risks, which is due to the ongoing military operations in Ukraine as a result of the aggression by the Russian Federation.

In order to conduct the analytical research the materials provided by «Optima-Pharm LTD» JV have been used, including: annual financial statements for 2020-2022 and 3 months of 2023, background information on the activities of «Optima-Pharm LTD» JV, information on the issue of A series bonds, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Corporate Department

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