VietNamNet Bridge - Hau Giang Pharmacy’s profit amounted to 41 percent of the total profit of all listed pharmacy firms in the first quarter of 2016.

The total net turnover of 17 listed pharmacy companies reached VND7.728 trillion in the first quarter, a slight increase of 6.34 percent over the same period last year. However, the post-tax profit increased significantly by 19.8 percent, reaching VND370 billion.

Sixteen out of 17 enterprises reported profit, of which 11 reported profit growth compared to the same period last year and six reported minus growth.

Hau Giang Pharmacy still led the market with net turnover growing by nearly 22 percent to VND815.4 billion. As the sale price accounted for 54.8 percent of net turnover, gross profit increased by 26.35 percent to VND368.3 billion.

The company had VND12.58 billion in revenue from financial activities, while the financial cost was still high at over VND17 billion.

Though the sale and operation costs increased by 23 percent and 31.45 percent, respectively, it still could make post-tax profit of VND151.5 billion, up by 35 percent over the same period last year, accounting for 41 percent of total profit of pharmacy firms.

Traphaco, another big player in the market, also had good Q1 business performance with net revenue of VND494.33 billion, an increase of 7 percent over last year’s same period and post-tax profit of VND51.18 billion, up by 12 percent.

According to Business Monitor International, the industry will still see a high growth rate in 2015-2018, about 16 percent per annum with total revenue estimated at $3.5-5 billion in 2015.

Domesco, another big name, reported profit of VND35.2 billion, up by 27.8 percent. Ben Tre Pharmacy had VND6.2 billion, nearly double over the same period in 2015, and Cuu Long Pharmacy VND20.4 billion, up by 62 percent.

A few other companies reported unsatisfactory business results. Cai Lay JSC, for example, reported the loss of VND1.4 billion, an increase of 24 percent over the same period last year. Its turnover was modest, VND13.7 billion, down by 5.3 percent.

Vimedimex, which always had high turnover, has gone downhill. Though the company’s turnover was still high, VND2.683 trillion, three times higher than that of Hau Giang Pharmacy, its profit of VND12 billion was modest, a sharp decrease of 34 percent over the same period last year. 

Imexpharm has also seen profit fall, VND21.2 billion, down by 18 percent. Meanwhile, OPC made a profit of VND21 billion, down by 7 percent.

According to Business Monitor International, the industry will still see a high growth rate in 2015-2018, about 16 percent per annum with total revenue estimated at $3.5-5 billion in 2015.

However, the industry has been warned that it will face a profit margin decrease because of stiff competition. It would require higher marketing and sales expenses, while the dong devaluation would lead to higher input-material costs.


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