Pharmaceutical enterprises earn huge profits amid pandemic

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The increase in medicine consumption amid pandemic has helped pharmaceutical enterprises’ revenues to increase. Photo: Internet.

According to the financial statements in the first quarter 2020 from HauGiang Pharmaceutical Joint Stock Company, its net revenue recorded growth of 12% compared to the first quarter of 2019, reaching VND 858 billion. Profit before tax hitVND 196 billion, upby 28%; after tax profit reached 177 billion, increasing by 31%.

HauGiang Pharmaceutical Joint Stock Company explained this growth due to the high demand for medicine consumption amid Covid-19, especially products that increased resistance. In the first quarter, the company tightly organisedits distribution system and effectively connected with customers; focused on selling strategic and key products. The company has also effectivelyimplemented projects to increase productivity and production efficiency to cutcosts.

DHG Pharma's profit plan of VND 720 billion in 2020 which is almost flat compared to 2019. Thus, by the end of the first quarter of 2020, the company reached 27% of the profit target for the year.

Similarly, revenue in the first quarter of Imexpharm Pharmaceutical Joint Stock Company also increased by 11% , reaching VND 303 billion; profit before tax increased by 13%, reaching VND 51 billion. Imexpharm said the company restructured its products and focused on key products with high value and profit margin. The proportion of Imexpharm products in total net revenue increased, so gross profit increased by 11% over the same period last year, hittingVND 176 billion.

In an investor newsletter in February, Imexpharm said revenue from over-the-counter medicines grew rapidly in the first months of 2020 due to the impact of the pandemic as consumers tended to increase medicine reserves.

In the second quarter of 2020, Imexpharm's most important goal is to ensure the sufficient supply of raw materials for production in the last sixmonths of the year amid the Covid-19 pandemic to ensure production and business targets of 2020 are completed effectively. In recent times, some important activities of the company have been suspended due to disease such as theEU-GMP approval for Binh Duong High-Tech Plant (IMP4) andorganisingthe General Meeting of Shareholders in 2020. If the situation in the second quarter is better, the company plans to carry out these activities.

In 2020, Imexpharm sets a target of pre-tax profit of VND 260 billion, up to 28% compared to 2019. With the results of the first quarter, the company has fufilled nearly 20% of the profit plan of theyear.

According to the consolidated financial statements for the first quarter of 2020 of Ha Tay Pharmaceutical Joint Stock Company, the company’s net revenue increased by 29% compared to the first quarter of 2019, reaching VND 519 billion. Meanwhile, cost price only increased by 27%, reaching VND 443 billion. Gross profit reached VND 76 billion, increasing by 53%.

After deducting expenses, Ha TayPharmaceutial Joint Stock Company earned more than VND 40 billion of profit before tax and VND 31 billion of net profit, up by 31% and 33% compared to the same period in 2019. With this achievement, it has completed 36% of the profit before tax target of 2020.