Grain and sunflower traders and construction firms dominate the ranking of the most dynamically growing large companies in Bulgaria in 2023 in the latest edition of Capital 100 ranking (K100). Representatives of the agriculture and construction sectors occupy almost a fifth of the top fifty places in this category, with the first group consisting mainly of traders, three of whom also stand at the top of the ranking. But a deeper look shows that they are either new or have taken over existing business, because the agricultural sector as a whole has not bloomed in 2023.
Measured in numbers, the upturn in the fastest-growing businesses in 2023 falls short of the record jump in 2022 when the average growth rate for the top 50 was 209%. Given that we are talking about companies with a turnover of more than BGN 50 million each, where by definition a higher base makes it more difficult to achieve faster growth, the average achievement of the top fifty is more than remarkable - an increase of 166.48%. Unlike the previous two years, however, when high energy prices gave the sector a boost, in 2023 the carrier rocket is grain products, whose market has been stirred up by the war in Ukraine. This conflict, predictably, is also helping to expand the business of arms manufacturers and traders. Lastly, the construction sector regains its position in this subranking, mostly on the back of the indexation to inflation of the estimated cost of major projects of the Road Infrastructure Agency.
The triple-digit increase of revenue in 2023 is all the more impressive against the backdrop of the overall K100 ranking, where the revenues of the top 100 companies have shrunk by 14.35% over the past year. Of course, a significant factor there is the stabilization of energy prices, which has normalized the performance of the sector's domestic giants who make up a big part of the K100 entrants.
In the acceleration lane
The number of companies that have grown their revenue at triple-digit and even higher rates is returning to more modest levels from the years before the energy boom. In this year's edition of the rankings, 22 of the country's corporate leaders reported at least a doubling of their revenues from a year earlier. As usual, this sample also includes companies where this blistering growth comes from a zero base - and the 2023 tier is no exception. In this year's group, for example, is grain, nut and oil trader Bulgaria Green, registered in 2022 by Ukrainian national Igor Solsky. With a reported increase in revenues of almost 1660% to BGN 53.8 million, the company also occupies the second position in the ranking of the most dynamically growing, only behind Papas Trading, where the acceleration in turnover is 1853% to BGN 60.3 million, mostly driven by sunflower trading. Another company from the same group makes it into the ranking at number 35 - Grain-99, which marks a 78.6% increase in its revenues to BGN 85.5 million. The bulk of its revenue also comes from trading in agricultural products.
Grain and oilseeds merchant Agro Trading Bulgaria is the third fastest growing company in K100 2023, with turnover jumping by 573.9% to BGN 56.8 million. At the beginning of 2024 it changed its ownership - the founder and until then sole owner Vasil Sirakov retained a 1% stake, while Hristo Doychev and Nikolay Manov, who is a former manager of Grainstore Trading from the eponymous group Grainstore Bulgaria of Stoyan Valev and Petar Chifudov, acquired stakes of 49% and 50% in the firm, respectively.
Next come two companies from the energy sector - electricity trader Active Energy Corporation established in 2022 with sole owner Plamen Nestorov is sixth, recording 363.6% growth of BGN 317.5 million in revenues in 2023. Seventh is Intellect Energy and Emissions Consultants, registered in 2012 by Greek citizen Ioannis Paros, which recorded a revenue jump of 324% to BGN 271.6 million last year.
Rounding out the growing-from-scratch group is the local unit of Switzerland's Dufry, which in the spring of 2022 signed an 8-1/2-year contract to operate in Sofia airport's retail areas. Under the deal the company will operate 13 stores at the Bulgarian capital's airport, 11 of which are duty-free and two duty-paid. In 2023, Dufry Sofia's revenues grew by 138.6% to BGN 80 million, which places the company 15th among the most dynamic corporate leaders.
The other high-flyers
The remaining companies that achieved triple-digit revenue growth in 2023 form a colorful group. Right after the top three in the ranking, for example, is Greystone Bulgaria, which has licenses for trading in electricity and natural gas, and is also developing a network of charging stations for electric vehicles under the Wink brand. Currently, it has over 90 sites across the country, and according to the chain's website, the ambition is to reach 250 by the end of the year. In 2023, the company's revenue grew by almost 425% to over BGN 195 million.
The top five of the most dynamic is closed by the consulting services, outsourcing, system integration and IT services provider Kontron Bulgaria. Last year, its turnover jumped by 368% to BGN 92.7 million, mostly because the company won a tender for the issuance of a new generation of identity documents.
The list of rapidly growing companies this year also includes the absolute champion in the country - Lukoil Neftochim Burgas. After operating on a shoestring for three years, the oil refinery controlled by Russia's Lukoil transferred its economic operations back to Bulgaria, which also returned it to the top of the ranking of the largest companies in the country. The reported revenue growth for 2023 is 297% to BGN 8.6 billion, which puts the company in eighth position among the top 10 most dynamic.
Ninth comes Glavbolgarstroy International, which is building the gas connection to Serbia on Bulgarian territory. It is also working on the repair of a transit gas pipeline to Turkey and is building two compressor stations along the Balkan Stream pipeline route - Rasovo and Nova Provadia. Last year, the company's turnover jumped by almost 294% to just under BGN 131 million.
The top 10 is completed by VTIC International, which tops the arms dealers ranking with its revenue growth of 276.5% to BGN 1.15 billion, of which 82% comes from exports. According to information on its website, the company is the successor to VTB Export Import owned by Vasil Vassilev, a former Bulgarian military attaché in Moscow. The owner of VTIC International is his grandson Petar Vassilev. The company trades in ammunition, military equipment and weapons and operates worldwide, including in Europe, the United States, Africa, the Middle and the Far East.
Grain and sunflower traders and construction firms dominate the ranking of the most dynamically growing large companies in Bulgaria in 2023 in the latest edition of Capital 100 ranking (K100). Representatives of the agriculture and construction sectors occupy almost a fifth of the top fifty places in this category, with the first group consisting mainly of traders, three of whom also stand at the top of the ranking. But a deeper look shows that they are either new or have taken over existing business, because the agricultural sector as a whole has not bloomed in 2023.
Measured in numbers, the upturn in the fastest-growing businesses in 2023 falls short of the record jump in 2022 when the average growth rate for the top 50 was 209%. Given that we are talking about companies with a turnover of more than BGN 50 million each, where by definition a higher base makes it more difficult to achieve faster growth, the average achievement of the top fifty is more than remarkable - an increase of 166.48%. Unlike the previous two years, however, when high energy prices gave the sector a boost, in 2023 the carrier rocket is grain products, whose market has been stirred up by the war in Ukraine. This conflict, predictably, is also helping to expand the business of arms manufacturers and traders. Lastly, the construction sector regains its position in this subranking, mostly on the back of the indexation to inflation of the estimated cost of major projects of the Road Infrastructure Agency.
