Major pharma firms report mixed Q1 profit results

Vietnam's leading pharma company Hau Giang reported a record after-tax profit in the first quarter of this year, Vinapharm's figure increased by 148%, while Traphaco and OPC posted drops of 10% and 28%, respectively.

Hau Giang Pharmaceutical JSC (DHG Pharma) reported an after-tax profit of VND361 billion ($15.36 million) in the quarter, up 41% year-on-year.

The company, listed on the Ho Chi Minh Stock Exchange (HoSE) as DHG, posted net revenue of nearly VND1.23 trillion ($52.3 million), up 15%, according to its financial statement.

In Q1, the company focused on selling antibiotic, analgesic and antipyretic products like Hapacol, Klamentin, and Haginat. It also actively increased its reserve of raw materials and finished products to meet market demand.

For 2023, DHG Pharma has set a revenue target of VND5 trillion ($212.8 million) and pre-tax profit of VND1.13 trillion ($48.1 million), up 7% and 3% respectively.

Closing the Wednesday session, DHG was traded for VND109,000 ($4.64) per share.

Meanwhile, Vietnam Pharmaceutical Corporation (Vinapharm) posted net revenue of VND1.23 trillion ($52.39 million), up 16% year-on-year, and after-tax profit of VND111 billion ($4.73 million), up 147%.

The corporation said that the increase of after-tax profit was due to the decrease in financial expenses, while income from financial activities rose. Besides, the profit of subsidiaries and associates climbed up over the same period last year.

In 2023, Vinapharm (DVN) expects consolidated revenue target of VND5.88 trillion ($250.55 million) and pre-tax profit of VND292 billion ($12.45 million), up 3.6% and 121.3% respectively, according to its 2023 shareholder meeting documents.

On the unlisted public company market UPCoM, the DVN share price hit VND17,100 ($0.73) at Wednesday's close.

In contrast, Traphaco (TRA) achieved after-tax profit of VND79.4 billion ($3.38 million) and net revenue of VND619 billion ($26.38 million), down 10% and down 0.8% year-on-year, respectively.

In 2023, Traphaco sets a net revenue target of VND2.6 trillion ($110.8 million) and after-tax profit plan of VND326 billion ($13.89 million), up 8% and up 11% respectively.

On the HoSE, the TRA share price hit VND89,000 ($3.79) at Wednesay's close.

OPC Pharmaceutical JSC (OPC) reported net revenue of VND198 billion ($8.44 million) in the period and after-tax profit of VND29 billion ($1.24 million), down 48% and 28%, respectively.

The company said that the sharp drop in revenue was due to the general difficulties of the market.

In its shareholder meeting documents, OPC aims at a revenue of VND1.29 trillion ($54.8 million), up 8% compared to 2022, and pre-tax profit of VND187 billion ($7.97 million), up 4%.

On the HoSE, OPC shares reached VND23,300 ($0.99) at the close on Wednesday.

Top broker SSI Securities said that the post-pandemic situation will remain stable in most aspects, but the economic downturn could stall spending on healthcare.

The first half of 2023 will be an unpredictable time for the supply of active ingredients (API) and excipients. About 65% of API used in the production of drugs in Vietnam is imported from China, which has reopened, but SSI Securities predicted that shortages could still occur.

In addition, the Russia-Ukraine confict is still going on, with active ingredients and drugs imported from Europe at risk of shortage. Companies that can use domestic raw materials will gain a better position.

SSI expects pharma industry revenue to reach VND169 trillion ($7.2 billion) in 2023, up 8% year-on-year.