Imexpharm announces third quarter results

October 19, 2024 | 10:53

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On October 18, Imexpharm Corporation announced its third quarter results for the three months ending September 30, 2024.

During the reporting period, Imexpharm continued to capitalise on its leadership position in the industry. The company also successfully completed its planned bonus share issuance to become the market leader by charter capital.

Financial highlights

Net revenue for the three months ended September reached VND545 billion ($21.7 million), up 17 per cent on-year. Imexpharm’s ability to sustain its leadership in the rapidly expanding ethical drugs channel (ETC) market contributed to this growth, with the company reporting a 47 per cent on-year increase in Q3 ETC revenue, sharply outperforming the sector’s 11 per cent growth for the first half of 2024.

Imexpharm announces third quarter results

Discussion session at Imexpharm's General Shareholders' Meeting. Source: Imexpharm

The over-the-counter (OTC) channel returned to positive territory, with Q3 OTC sales up 8 per cent on-year. Sales in the pharmacy chains channel for the first nine months of 2024 surged by 158 per cent on-year.

Profit before tax (PBT) and earnings before interest, taxes, depreciation, and amortisation (EBITDA) in Q3 increased by 5 per cent and 3 per cent on-year, respectively. For the first nine months of 2024, PBT and EBITDA reached $10 million and $13.3 million, down 12 per cent and 4 per cent on-year. This marks an improvement compared to declines of 19 per cent and 7 per cent for the first half of the year. Notably, September 2024 revenue at IMP4 was triple that of September 2023 and double that of August 2024.

The EBITDA margin climbed to 22 per cent by the end of Q3, supported by accelerating revenue growth, increased production volumes at IMP4, and tight control of SG&A expenses, which rose by 2.8 per cent on-year.

Business highlights

Demand for Imexpharm’s IMP4 products accelerated during the period, leading to a significant increase in production at this factory, while production was also ramped up at IMP2 and IMP3.

Employees working at IMP's EU-GMP factory. Source: Imexpharm

In the first nine months of the year, the company launched 16 new SKUs and advanced 99 ongoing R&D projects in its innovation pipeline.

Imexpharm implemented SAP S/4HANA, becoming the first pharmaceutical company in Vietnam to adopt this advanced technology, setting new standards for operational efficiency and customer service.

Board of Directors and senior management changes

The company appointed Le Nu Minh Hoai, former general director of United International Pharma, who brings 30 years of experience in international and Vietnamese pharma, as new deputy CEO.

Following the resignation of Chaerhan Chun on September 26, it is proposed that Sung Min Woo be appointed as a director, subject to shareholder approval. Woo has over 20 years of experience in Asia, including roles at SK and in management consulting.

The company expresses its sincere gratitude to Chaerhan Chun for her significant contributions to Imexpharm’s growth, governance, and management, which have transformed the company into a pharmaceutical enterprise with an organisational and governance system aligned with advanced international standards. Chun will continue in her role until her resignation is approved by the general meeting of shareholders, after which a new chairman will be appointed.

Bonus share issuance

Imexpharm successfully completed its bonus share issuance, becoming the largest listed pharmaceutical company in terms of charter capital, further strengthening its market leadership. The increased number of shares in circulation has stimulated more active trading in Imexpharm’s stock, fulfilling the company’s plan to bolster its equity base and enhance market liquidity, supporting its expansion plans over the next three to five years.

New factory investment plan

Imexpharm announced plans, subject to shareholder approval, to build Cat Khanh Pharmaceutical Factory Complex in Dong Thap province. This factory will enable Imexpharm to further diversify its product portfolio to meet rising demand and expand into additional export markets.

The planned project will cover over 25,000 sq.m, with an estimated investment of $59.2 million, funded by 20 per cent equity and 80 per cent debt. The company aims to complete the necessary legal procedures by Q1 2025 and begin construction in Q3 2025, with the goal of completing the factory by the end of 2028 and commencing commercial operations between December 2028 and Q1 2030. The project plan has been submitted to the General Meeting of Shareholders for approval.

Imexpharm also announced its intention to liquidate certain investment stocks and unused real estate to recover capital for new projects, including this new factory.

Market outlook

The outlook for Vietnamese pharmaceutical companies remains positive, driven by recent government measures supporting local players and Vietnam’s competitive advantages. Imexpharm anticipates increased demand for its products, leveraging its 45-year history.

Imexpharm continues to benefit from the government’s action plan, published in February 2024, which supports the national strategy for the pharmaceutical industry. The plan expects local production capacity to meet 80 per cent of domestic demand and 70 per cent of total market value by 2030.

General director Tran Thi Dao spoke at the 2024 Imexpharm General Shareholders' Meeting. Source: Imexpharm

Tran Thi Dao, general director and board director of Imexpharm said, “I am immensely proud of Imexpharm and our team’s achievements to date. This quarter, we have seen strong performance amidst growing demand for our products. Imexpharm has numerous competitive advantages, including its long history, capability to produce complex injectables, and a superb management team focused on creating shareholder value.”

“I am confident that Imexpharm will continue to grow rapidly, striving to become the largest pharmaceutical manufacturer in Vietnam and a major player in the Asian pharmaceutical sector. I would also like to express our sincere gratitude to Chaerhan Chun for her significant contributions during her tenure. She will be greatly missed,” she said.