Imexpharm announces business results for the third quarter and the first 9 months of 2024
On October 18, 2024, Imexpharm Pharmaceutical Joint Stock Company (Imexpharm) - a leading pharmaceutical enterprise in Vietnam announced its business results for the third quarter and the first 9 months of 2024.
In the first 9 months of 2024, Imexpharm continued to promote its leading position in the production and distribution of high-quality antibiotics. The company also completed the issuance of bonus shares, becoming the leading company in the Vietnamese pharmaceutical market in terms of charter capital.
Outstanding financial results
Net revenue in the third quarter of 2024 reached VND 545 billion, up 17% year-on-year thanks to maximizing the leading position in the ETC channel. ETC channel revenue in the third quarter increased by 47% year-on-year. This growth rate is higher than the industry's 11% increase in the first half of 2024 (latest updated data at present).
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| Discussion session at Imexpharm Shareholders' Meeting. Source: Imexpharm |
The OTC channel began to recover, with Q3 revenue increasing 8% year-on-year. Total sales revenue through the pharmacy chain in the first 9 months of 2024 increased 158% year-on-year.
Profit before tax and EBITDA in Q3 2024 increased by 5% and 3% respectively compared to the same period last year. In the first 9 months of 2024, profit before tax and EBITDA reached VND 252 billion and VND 334 billion, down 12% and 4% compared to the same period last year (compared to a decrease of 19% and 7% in the first 6 months). Revenue in September 2024 at IMP4 was double that of August and triple that of September 2023.
EBITDA margin increased to 22% at the end of the third quarter thanks to strong revenue growth, coupled with increased production at IMP4 and effective control of SG&A expenses, which increased just 2.8% year-over-year.
Featured business activities
In the first 9 months of 2024, IMP4's output increased sharply. At the same time, the company also increased production capacity at IMP2 and IMP3 to meet market demand.
In the first 9 months of 2024, the company launched 16 new products with 99 ongoing R&D projects. Imexpharm also deployed the most modern software – SAP S/4HANA. Accordingly, Imexpharm became the first pharmaceutical company in Vietnam to apply advanced technology in operations and customer service.
Changes in the Board of Directors and Executive Board
The company has appointed Ms. Le Nu Minh Hoai, former General Director of United International Pharma, as Deputy General Director. Ms. Hoai has 30 years of experience in the international and Vietnamese pharmaceutical industry.
Following the resignation of Ms. Chun Chaerhan on September 26, Imexpharm has proposed the appointment of Mr. Woo Sung Min to the Board of Directors (currently pending shareholder approval). Mr. Woo has more than 20 years of management consulting experience in Asia.
Bonus share issuance
Imexpharm has completed the issuance of bonus shares and become the largest listed pharmaceutical company in terms of charter capital, consolidating the company's leading position in the market and competitiveness, promoting more active trading of IMP shares, improving liquidity, and consolidating the capital base to prepare for the expansion plan in the next three to five years.
New factory investment plan
The company has announced its plan and is in the process of obtaining written shareholders' opinions to approve the construction of the Cat Khanh Pharmaceutical Factory Complex Project in Dong Thap with the goal of diversifying its product portfolio and expanding new export markets.
The project has a total area of 25,000 m2, with a total estimated investment of VND1,495 billion. The estimated investment capital will include 20% equity and 80% loan capital. The company expects to complete the construction target by the end of 2028, and start commercial operations between December 2028 and the first quarter of 2030.
Market outlook
The Government’s Action Plan, announced in February 2024, to implement the National Strategy for Vietnam’s pharmaceutical industry, continues to facilitate Imexpharm’s growth momentum. Accordingly, domestic production capacity is expected to meet 80% of domestic pharmaceutical demand and 70% of total market value by 2030.
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| General Director Tran Thi Dao speaks at Imexpharm 2024 Shareholders' Meeting. Source: Imexpharm |
Ms. Tran Thi Dao, Member of the Board of Directors and General Director of Imexpharm, said: “In the third quarter, the Company has grown impressively. This affirms Imexpharm's correct strategy, competitive advantage and more than 45 years of experience in the market. It affirms the tireless contributions of more than 1,400 employees, the efforts of the Board of Directors and the leadership of the Board of Directors, especially Ms. Chun Chaerhan. On behalf of the Board of Directors of Imexpharm, I would like to thank Ms. Chun Chaerhan for her great contribution to Imexpharm's overall achievements, helping to bring outstanding value to customers, partners and shareholders.
I believe that with a strategy of in-depth investment in product quality, advanced technology transfer, expanding drug portfolio, penetrating international markets and increasing production capacity, Imexpharm will always maintain its position as the leading pharmaceutical enterprise in Vietnam, gradually becoming a well-known enterprise in the Asian pharmaceutical market.
Imexpharm is a market leader in the production and distribution of high-quality antibiotics in Vietnam. With over 45 years of history, Imexpharm has always been a pioneer in the Vietnamese pharmaceutical industry in terms of safety and quality standards. The company has a strategic and financial foundation ready for growth in both domestic and international markets; has been and will continue to expand its product portfolio into new treatment and healthcare areas. At the end of the first 9 months of 2024, IMP's stock price increased by 97% compared to the beginning of the year, much higher than the 14% increase of the VN-Index on the Ho Chi Minh City Stock Exchange.
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