Hau Giang Pharmaceutical (DHG) revenue growth is still behind the annual business plan

Hau Giang Pharmaceutical (DHG)’s business results in the first 6 months of the year showed many positive signs. However, the company is still behind schedule compared to the plan set at the beginning of the year.

Specifically, the Q2/2023 financial statement recorded Hau Giang Pharmaceutical's net revenue from sales reaching VND 1,152.6 billion, up 3% compared to Q2/2021. Cost of goods sold accounted for VND 591 billion, gross profit reached VND 561.7 billion.

Notably, in the second quarter, financial revenue increased by 73% to VND57.7 billion. Meanwhile, financial expenses decreased from VND24 billion to only VND20 billion. However, although financial expenses decreased, interest expenses increased from VND5.1 billion to VND7.1 billion, showing that debt pressure is increasing in DHG's business structure.

Hau Giang DHG revenue still slows down business plan year 1 — Hau Giang Pharmaceutical (DHG) revenue increased but still behind the annual plan (Photo TL)

Selling expenses and administrative expenses both increased slightly to VND239.1 billion and VND69.4 billion, respectively. Profit after corporate income tax reached VND263.3 billion, up 12% over the same period.

DHG's accumulated net revenue in the first 6 months of the year reached VND2,381 billion, up 9% over the same period. Accumulated profit after tax reached VND624 billion, up 27%.

Although the 6-month business results showed growth, compared to the business results set at the beginning of the year, DHG only completed 48% of the revenue plan and 60% of the annual profit plan.

Total assets of Hau Giang Pharmaceutical, as of the end of the second quarter of 2023, DHG had total assets of VND 5,724 billion, an increase of 10.8% compared to the beginning of the year. Of which, cash and cash equivalents only accounted for VND 56.4 billion. However, in return, the company still has VND 2,320 billion in deposits at the bank. Inventory tends to increase from VND 1,250.8 billion to VND 1,489.8 billion.

Regarding the capital structure of Hau Giang Pharmaceutical, short-term debt was recorded at 1,298.2 billion VND, one and a half times higher than the beginning of the period. As mentioned above, financial expenses decreased but interest expenses increased, showing that the company is increasing its borrowing. Short-term debt increased by more than 500 billion VND, from 114.7 billion to 621.2 billion VND. Meanwhile, the company did not record any long-term debt.

DHG's equity is currently at VND4,426.6 billion, a slight increase compared to the beginning of the year. Of which, DHG's contributed capital accounts for VND1,307.5 billion. Notably, the Development Investment Fund recorded up to VND2,458.1 billion, nearly double the initial contributed capital of the owner. Undistributed profit after tax decreased from VND1,018.4 billion to only VND654.2 billion.

Source