Central Vietnam pharma major Danapha posts increased revenue, falling profit in H1

Danapha Pharmaceutical JSC, a leading pharma firm in central Vietnam, recorded a 7% increase in revenue in the first half of 2024 but a 9% drop in profit compared to the same period last year.

The Danang city-based company’s H1 net revenue from sales and services reached more than VND284 billion ($11.23 million), an increase of 7% year-on-year, while its pre-tax and after-tax profits were VND50.3 billion ($1.99 million) and VND37.8 billion, down 9% and 14%, respectively, according to its Q2/2024 financial statements.

In the second quarter, the company’s net revenue from sales and services hit more than VND151.6 billion ($5.99 million), an increase of 4.6% year-on-year, while its pre-tax and after-tax profits were VND22.3 billion ($881,630) and VND15.8 billion, down 30% and 37.8%, respectively.

Danapha attributed its declining net profit to a loss from the EUR exchange rate difference.

In 2024, Danapha, registered on the Unlisted Public Companies Market (UPCoM) as DAN, is targeting VND545 billion ($21.55 million) in total revenue and VND77 billion ($3.04 million) in pre-tax profit. In the first half, the firm completed 65% of the year's profit plan.

As of June 30, 2024, Danapha's total assets stood at VND1,435 billion ($56.73 million), up VND141 billion from the start of the year. Of which, its short-term assets were valued at VND518 billion, including over VND385.7 billion worth of short-term revenue. Notably, cash and cash equivalents hit VND9 billion, down about VND50 billion compared to the beginning of the year.

Meanwhile, Danapha's long-term assets reached VND917 billion ($36.25 million), an increase of VND174 billion compared to the beginning of the year. Of which, fixed assets hit more than VND117 billion while long-term unfinished assets were more than VND773 billion.

The firm had more than VND687 billion ($27.16 million) in liabilities, VND103 billion higher than in January. The figure included VND373 billion of short-term debt, and VND314 billion of long-term debt.

In March 2024, Danhson VN Co., Ltd. purchased 13.8 million DAN shares for over VND138.3 billion ($5.5 million) to become the parent company of Danapha with an ownership ratio of 66.07%.

In April, Danhson VN acquired more than 1 million DAN shares for over VND10.2 billion ($403,257), raising its stake in the pharmaceutical firm to 70.97%.

On the stock market, DAN closed the Friday session at VND32,100 ($1.27).