Hyphens Pharma Limited reported 1H2024 revenue grew by 33.4% to S$99.6 million in 1H2023 with all three business segments contributing to the growth.
Revenue from the Group’s Specialty Pharma Principals segment led the growth with a 51.7% increase in revenue which was fuelled by higher demand across the countries and the easing of supply chain disruptions which occurred in 1H2023. Revenue from the Proprietary Brands segment rose by 20.7% due
to the contribution of higher demand for Ceradan® dermatological products and Ocean Health® health
supplements. The revenue from the Medical Hypermart and Digital segment remained stable with a
growth of 3.8%.
The Group’s gross profit correspondingly increased by 24.2% to S$34.8 million in 1H2024 with gross profit
margin dipping slightly from 37.5% in 1H2023 to 34.9% in 1H2024.
As a result of the above, the Group’s net profit after tax increased by 66.7% to S$5.9 million in 1H2024,
which translated to a basic earnings per share of 1.75 Singapore cents for
1H2024 (1H2023: 1.15 Singapore cents).
Business Outlook
Growing its Proprietary Brands
In the second quarter of 2024, the Group’s proprietary brands experienced a healthy recovery following
a slight decline in quarter-on-quarter sales in the first quarter. This growth was driven by an increase in
demand for Ocean Health® and Ceradan® products. The Group plans to continue nurturing these brands
in existing markets and seeking new international partnerships to enter additional markets. Along with its
regional expansion, the Group has been focused on investing in innovation with the goal of offering
customers a broader range of products.
Strengthening the Specialty Pharma Portfolio
The licensing of Amenalief® from Maruho for ASEAN in June 2024 was a welcome and strong addition to
the Specialty Pharma portfolio of the Group. The Specialty Pharma portfolio rebounded from slower sales
in the first quarter of 2024, achieving 25% quarter-on-quarter growth in the second quarter. Compared to the second quarter of 2023, which was severely impacted by supply chain disruptions, the Group has
demonstrated substantial year-on-year growth. With the easing of supply chain issues in the latter half of
2023, the Group has been making greater efforts to regain its market share across various channels.
Since its launch last year, the Group’s Medical Aesthetics business has delivered a remarkable
performance, and the business has extended its footprint to Indonesia and the Philippines in 1H2024. It
is now present in most of the ASEAN countries where the Group operates.
Going Digital
The Company’s subsidiary, DocMed Technology Pte Ltd (“DocMed”), underwent a leadership transition in
the second quarter of 2024 and its technology capability and core digitalisation strategy remains intact.
The Group continues to pursue the development of its platform technology, while at the same time
further strengthening its customer and vendor base.
Expanding through Acquisitions
With a focus on long-term growth, Hyphens Pharma remains diligent and disciplined in its approach to
acquisitions by prioritising opportunities that align with its strategic goals that can contribute positively
to its business.
Navigating a Challenging Macro-Economic Environment
In the midst of a challenging macro-economic landscape, Hyphens Pharma continues to encounter heightened volatility and uncertainty, which will impact its operations across various countries. The weakening of ASEAN currencies against the US dollar in the second quarter for example, has placed tremendous pressure on the Group’s gross margin. Due to the nature of the pharmaceutical business, it is challenging for the Group to pass on the full impact of these costs to the market.
Despite these challenges, Hyphens Pharma remains steadfast in its commitment to navigating the volatile
operating environment with vigilance, diligence, and agility. The Group’s solid business foundation
enables it to withstand challenges and capitalise on relevant opportunities that align with its business
strategy. Through these concerted efforts, the Group aims to maintain its resilience and sustain its growth
amid any uncertainties.