1Q2023 Financial Review
Hyphens Pharma Limited’s revenue fell by 15.2% or S$6.0 million from S$39.2 million in 1Q2022 to S$33.2 million in 1Q2023. This was driven by several factors:
- Revenue from specialty pharma principals segment decreased by 27%, primarily due to the cessation of distributorship of Biosensors products and shipment delays for some of key products sold in Vietnam, mitigated by increased demand in Singapore.
- Revenue in the proprietary brands segment increased by 16%, the result of higher demand for Ceradan® dermatological products.
- Gross profit correspondingly decreased by 12.7% from S$15.0 million in 1Q2022 to S$13.1 million in 1Q2023.
- Gross profit margin, however improved to 39.5% (1Q2022: 38.4%) due to lower sales contribution from Vietnam which has a lower gross profit margin.
- Net profit after tax in 1Q2023 fell by 56.9% to S$1.4 million. This was the consequence of decreased gross profit coupled with increased travelling and higher research and development costs.
Business Outlook
- Growing Its Proprietary Brands: Proprietary Brand business remains the Group’s key focus. Ocean Health®, Ceradan®, TDF® and CG 210® have enjoyed robust growth in sales and brand equity. The Group will continue to nurture these brands in markets where it already has presence, seek out new international partnership opportunities to enter new markets, and invest into innovation to further develop new and improved products under the respective brands. In tandem with its regional expansion, the Group has also been innovating its Proprietary Brands portfolio in pursuit of its goals. Ceradan® and Ocean Health® have a pipeline of new products to be launched this year. The Group has launched Ceradan® Advanced Emollient Wash in Singapore and Malaysia during 1Q2023.
- Going Digital: The Group’s subsidiary, DocMed Technology, is actively pursuing strategic collaboration opportunities to develop an integrated digital healthtech platform, incorporating various healthtech solutions, to cater to healthcare stakeholders in Singapore and the Asia-Pacific region. In April 2023, DocMed, has entered into a joint venture to develop a B2B virtual medical hypermart for pharmaceutical supplies in Vietnam.
- Expanding through Acquisitions: As part of its long-term growth strategy, the Group has been and will continue to be prudent and disciplined in its approach to acquisitions, seeking out opportunities that are accretive for its business and/or in alignment to its strategic goals.
- Strengthening Specialty Pharma Portfolio: The Group remains focused on further cementing its leadership position and deepening its presence in the ASEAN region and is actively seeking licensing opportunities for new products.
Further Updates
The global environment remains volatile and challenging due to ongoing supply chain challenges and
inflationary pressures. The Group will remain agile and vigilant to respond to changing market conditions.
