MethodologyThe rating of the 200 most dynamic enterprises lists the 200 biggest Bulgarian companies whose financial data was collected in the process of preparing "Capital 100". The ordering is according to earnings growth in the last three financial years. The sector rating compares the average annual growth of the 10 biggest companies in any given sector (for some sectors, such as agriculture, the number is less than 10). The rating does not include companies which have radically changed their area of activity, for example in a new company; such as CEZ, EVN and Eurohold.
If the company horizon has stars, then the most dynamic firms' rating represents those that shine brightest. The 50 most dynamic Bulgarian companies (among the 200 biggest) have registered an average 62% leap in revenues, a result to be envied by all local and foreign corporations. Their performance is almost four times higher than the average for the "Capital 100" firms. Besides, the growth rate of the 50 most dynamic is sustainable as in the previous year their earnings had risen by some 50%. Last year the champion was a foreign company, Turkish Sisecam with its glass plants, this year the leader among the fastest growing enterprises is again a foreign company but from the textiles sector. The reason for the change is an investment of over 73.7 million levs which the Italian company E.Miroglio used for the construction of a new factory for textile manufacturing and dyeing in Yambol.
The second place, however, is held by an all-Bulgarian company – Plovdiv-based producer of pastries and processed meat products Bella. In the last few years the company has been expanding its plant capacity continuously and has undertaken an aggressive advertising strategy. Part of its achievement is also due to internal restructuring and the consolidation of subsidiaries under the parent’s lead.
The next two places are occupied, surprisingly, by municipal Metropoliten and state-controlled Sunny Beach. The presence of the former one is probably a result of the intensified use of the underground transport in Sofia. The resort, for its part, received a multi-million income from the sale of an asset – the power distribution network of the Sunny Beach complex – in a deal worth 36.8 million levs.
The construction sector continued to be rich in profit opportunities. While last year there were only three representatives of the business in the most dynamic group – Midia, AT Engineering 2000 and Planex – this year they are joined by Holding Roads, Balkanstroy, and Glavbolgarstroy. It is a fact, however, that due to the construction boom the whole sector has been growing strongly; its representatives among the 200 biggest companies have registered an average profit increase of 30%.
There are differences for the firms in the fuel trade sector, as well. In 2007 the company that reported the biggest rise of revenues was one of the youngest filling station networks, Greek Eko Bulgaria. The reason is obvious, the firm increased the number of its stations mainly through constructing new ones and leasing existing Eko Petroleum stations. The other new fuel champion in terms of revenue increase is Bulmarket DM. The company has ranked among the largest traders of propane-butane, but lately the firm entered into other segments, as well, offering equipment for methane filling stations and biodiesel. The growing consumption of natural gas on the part of households led to a significant rise in the revenues of Overgas Inc. Energy companies are almost missing from the top 50, although the revenues of the largest representatives of the sector grow by some 23% annually. Yet, their only representative in the latest issue is Varna TPP.
Good news for the Bulgarian economy is the presence of 17 industrial companies in the league of the fastest-growing. A big part of them are newly-built plants whose output is mainly exported. This year again the metallurgical industry has a noticeable presence, which is easily explained with the rising prices of metals which leads to increasing revenues for these firms. The group of trading companies is also significant. New entries include PC dealers (Stemo), machines (Kirov), alcohol (Avendi). Among the remaining leaders are traditionally present distributors of drugs, cars, and hypermarket chains.
If the companies are ranked according to which is the fastest growing for the period 2005-2007, the leading positions would be held by firms that recently entered the Bulgarian market. The top three would include the country’s third GSM operator BTC Mobile, Sisecam's plants Trakia Glass Bulgaria, and Lithuanian store chain T-Market, operating through Maxima Bulgaria.
The sector dynamics presents a surprise – agriculture comes out as the fastest growing. This is based on the soaring agricultural raw materials prices. It should be borne in mind, however, that the top 200 includes only one agricultural company, Viand. The growth is entirely a result of the good year for Viand’s animal feed plants. It is also one of the few companies in the sector with a foreign owner.