Vietnam's pharma major Phytopharma posts 24% decline in Q2 profit

Ho Chi Minh City-headquartered Phytopharma, one of the leading pharmaceutical firms in Vietnam, reported an after-tax profit of VND15 billion ($57,340) in the second quarter of this year, down 24% year-on-year.

The profit decline was attributed to the absence of deferred corporate income tax benefits seen in Q2/2024 (estimated at VND8.5 billion or $324,985), according to its freshly released Q2/2025 financial statement.

The company's Q2 revenue reached over VND11 trillion ($420.6 million), up 8% compared to the same period in 2024.

Since the cost of goods sold only rose by 7%, its gross profit increased by 14% to VND404 billion ($15.44 million). After deducting expenses, profit before tax came in at VND19.3 billion ($737,725), marking a 16% increase year-over-year.

In the first half of 2025, the company's revenue hit more than VND22.1 trillion ($844.8 million), up 12% year-on-year, and after-tax profit rose 10% to VND46 billion ($1.76 million).

At the end of Q2, Phytopharma's total assets stood at about VND16.5 trillion ($630.73 million), an 8% increase from more than VND15.2 trillion at the end of 2024. Liabilities increased by over VND1.1 trillion, also up 8%, reaching VND15.88 trillion. Meanwhile, its equity rose 7% to VND569 billion ($21.75 million).

Phytopharma traces its roots back to Central Traditional Medicine Company, which was formed by merging several traditional Eastern medicine establishments after 1975.

It was later renamed Ho Chi Minh City Grade I Herbal Medicine Company, and eventually Central Pharmaceutical Company No. 2 (Phytopharma). In 2002, it was equitized with a charter capital of VND14 billion ($535,147).

As of the end of 2024, the company had a charter capital of VND381.9 billion. Major shareholders include Phytopharco Vietnam Co., Ltd. (18.18%), Nguyen Thien Duc (13.49%), Newtechco Group JSC (10%), Vietnam Pharmaceutical Corporation (9.9%), and Nguyen Cong Chien (5.74%).

Phytopharco Vietnam was established in June 2009. As per the most recent business registration update in October 2017, 99% of its shares are held by 58-year-old Nguyen Cong Chien, who serves as chairman.

Phytopharma states on its website that Chien has over 30 years of experience in managing and operating businesses across various sectors, including herbal medicine, pharmaceuticals, medical equipment, and real estate. Another notable shareholder is Newtechco Group JSC, founded in 2014.