SOFIA, Bulgaria (BulgarianMilitary.com) – Bulgarian state-owned arms trader Kintex said that its net profit grew to 21.6 million levs (US$12.4 million/11.0 million euro) in 2018 from US$9,4 mln. the year before, despite a drop in revenue, learned bulgarianMilitary.com, quoting SeeNews.
The company’s total revenue lost 23% to US$147 mln. last year, as net sales erased 25% to US$138,2 mln., Kintex said in an annual financial statement.
Kintex cut its expenses by 26% to US$133 mln. in 2018, following a similar decrease in cost of goods sold, which amounted to US$98,4 mln..
In a separate financial statement, Kintex said that its net profit nearly halved to US$2,7 mln. in the first quarter of 2019 from US$4,6 mln. in the same period of 2018.
The company’s total revenue plunged 77% to US$9 mln. in the first three months of the year, due to a decrease in sales. Total expenses fell to US$6 mln. in the January-March period of 2019 from US$33,7 mln. in the comparable period of 2018.
BulgarianMilitary.com recalls that in the end of March this year the specialized prosecutor‘s office and SANS entered the offices of “Kintex” because of doubts about the illegal export of weapons and the draining of the company.
According to Deputy Prosecutor General Ivan Geshev, Kintex pays millions of levs to its customers without taking action to protect its interest or to do the same with the arms dealer.
The version of the Prosecutor’s Office is based on the contractual relationship between “Kintex” and the arms buyer. That is, when a poor-quality product is detected, the client charges penalties directly to “Kintex” and not to the manufacturer of the weapon.
Kintex, established in 1966, became a joint stock company wholly owned by the state in 1992. Kintex is specialized in exports of products manufactured by Bulgarian defence and machine-building industries.
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Source: See News