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Pharmaceutical firms report mixed results in Q1

Update: April, 24/2021 - 08:42
Workers checking products at Traphaco's plant. — Photo baodautu.vn

HÀ NỘI — Despite expectations to benefit from rising healthcare demands amid the COVID-19 pandemic, pharmaceutical companies recorded mixed results in the first quarter.

In its quarterly financial report, Traphaco JSC (TRA) posted a gain of 23.7 per cent year-on-year in net revenue to over VNĐ486.8 billion in the first quarter of 2021. 

Its profit after tax still increased nearly 20 per cent to VNĐ35.63 billion, while financial expenses rose dramatically during the period, up nearly 127 per cent, and sales expenses rose 28.7 per cent.

Another company posting outstanding performance in the same period was DHG Pharmaceutical JSC (DHG). DHG's net revenue reached VNĐ1.02 trillion, up 18.5 per cent against last year. 

The company's profit after tax also witnessed a climb of 15.3 per cent to nearly VNĐ204 billion.

The positive results were due to higher sales and better management in costs, the financial report showed. Of which, while its financial expenses and general and administrative expenses dropped 5.9 per cent and 27.7 per cent, respectively, sales expenses rose slightly 9.1 per cent. 

Business activities of OPC Pharmaceutical JSC (OPC) also brought good results in the first quarter with its revenue gaining 4.5 per cent over last year to VNĐ278.9 billion. The company reported a rise of 13.6 per cent in profit after tax to VNĐ36.8 billion.

Meanwhile, Domesco Medical Import Export JSC (DMC) and Hà Tây Pharmaceutical JSC (DHT) recorded poor results during the period. 

The quarterly financial report showed that DMC's net revenue was little change compared to the same period of 2020 at over VNĐ290 billion, while profit after tax declined 44.3 per cent to VNĐ23.76 billion on the higher cost of goods sold and other expenses. 

DHT also saw a loss of 26.8 per cent year-on-year in revenue to VNĐ379.9 billion, resulting in lower profit after tax. The company's profit slid 32 per cent to VNĐ21.9 billion. 

Better growth outlooks

Even though the first-quarter results were not as great as expected, companies in the industry were still optimistic for 2021.

Most pharmaceutical firms set growth or slight dips in profit, such as DHG expected its profit to stay unchanged at VNĐ821 billion, or Cửu Long Pharmaceutical JSC (DCL) set this year's profit target of VNĐ110 billion, up 59.4 per cent. 

Others like DMC and TRA also expected double-digit growth in 2021. 

Despite better outlooks, not all pharmaceutical shares have performed well since the beginning of the year, such as TRA shares losing nearly 4.4 per cent for 2021, or DHG shares falling nearly 5 per cent. — VNS

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