Leading pharma firm DHG reaps $42 mln record profit in 2022

Hau Giang Pharmaceutical JSC (DHG Pharma) recorded an after-tax profit of VND988 billion ($42.13 million) last year, a 27% rise year-on-year.

The company, listed on the Ho Chi Minh Stock Exchange (HoSE) as DHG, reported net revenue of VND4,674 billion ($199.32 million) last year, up 17%, according to its financial statement.

With such results, DHG Pharma surpassed its yearly revenue and post-tax profit targets by 10.8% and 45%, respectively.

In Q4/2022, the company’s net revenue reached VND1,330 billion ($56.72 million), up 22% year-on-year. Of this, revenue of DHG products was VND1,196 billion, an increase of 18%. Its after-tax profit in the quarter was VND236 billion ($10.06 million), a year-on-year rise of 39%.

The company attributed its Q4/2022 high profit to high demand for drugs, especially antibiotic products and products to prevent diseases and strengthen the immune system. Besides, it actively increased the stock of raw materials and finished products to meet market demand, closely managed the distribution system, and set up good customer connections.

In its business plan for 2023, DHG targets VND5 trillion ($213.22 million) in net revenue and VND1.13 trillion ($47.33 million) in pre-tax profit, representing respective year-on-year increases of 7% and 12%.

As of December 31, 2022, its total assets reached VND5,168 billion ($220.38 million), an increase of VND554 billion ($23.62 million) compared to the beginning of the year.

Closing the Thursday trading session, the last day before the country's Lunar New Year holiday, DHG was traded for VND89,400 ($3.81) per share, down over 26% from one year ago.

DHG Pharma, formerly known as September 2 Pharmaceutical Enterprise, was established in 1974 in U Minh district, the southernmost province of Ca Mau.

In 2004, Hau Giang-Can Tho Pharmaceutical Joint Venture was transformed into Hau Giang Pharmaceutical Joint Stock Company, which officially became operational with an initial charter capital of VND80 billion ($5 million, based on 2004 exchange rate).