Bulgaria's first and largest organic food producer, Smart Organic, will open a new production facility in April. The factory near Sofia, which is currently under construction, will allow the company to increase its sales from 80 million levs to some 300 million levs (153 million euro) a year. Also in the plans is a capital increase on the stock exchange this year, to be used to finance further capacity expansion.
The new investment
Smart Organic, which is known for brands like Roobar, Kookie Cat, Dragon Superfoods and Bett'r, will open its new factory, in the Bozhurishte Industrial Zone on the outskirts of Sofia, in early April. The investment in building, technology and machines amounts to some 16 million levs. The facility will provide about 30 jobs, Yani Dragov, founder and majority owner, told the Capital Weekly.
The company purchased a 12,000 sq. m. plot for 1.3 million levs from National Company Industrial Zones. The production and warehouse facilities will cover 6,000 sq. m., including two shops for chocolate products, tahini and raw bars, which will considerably expand the company's production capacity. "The new factory will allow us to reach annual sales of 300 million levs. For comparison, our sales amounted to 80 million levs in 2023," said Dragov, who holds 96.35% of the shares.
The project in Bozhurishte is yet another investment for Smart Organic. The company already has two production facilities in Sofia's Knyazhevo district.
Sales in 2023 increased more than 40%, year on year, with exports accounting for two-thirds of them. "The German-speaking (DACH) market, for instance, nearly doubled. We aim to achieve 25% growth in 2024 and above 30% in 2025 and 2026," Dragov said.
To the regulated stock market
Currently, Smart Organic trades its shares on the BEAM growth market of the Bulgarian Stock Exchange (BSE). The company plans to move its shares to BSE's regulated market and is now preparing its prospectus. The move is connected with plans to increase the company's capital. "We aim to raise 20 million levs, which will be difficult on the BEAM, because of the restrictions for pension funds there. Besides, foreign investors prefer the regulated market, as it gives them more security," Dragov commented.
The fresh capital will be used for further expansion of production. "Our plans include a second stage of investment in the Bozhurishte Industrial Zone, which should be a fact in the next couple of years," Dragov said.
That will be Smart Organic's second attempt to get listed on the BSE's main market. In 2016 the Financial Supervision Commission foiled the company's plans and rejected its prospectus with unclear motives.
Bulgaria's first and largest organic food producer, Smart Organic, will open a new production facility in April. The factory near Sofia, which is currently under construction, will allow the company to increase its sales from 80 million levs to some 300 million levs (153 million euro) a year. Also in the plans is a capital increase on the stock exchange this year, to be used to finance further capacity expansion.
