Hyphens Pharma International 1J5 has reported earnings of $2.1 million for its 3QFY2023 ended Sept 30, a 47.2% drop from its earnings of $4.0 million in the corresponding period the year before.
The company says this was the result of lower gross profit and increased foreign exchange losses due to unfavourable local currency exchange rate movements against the US Dollar and Euro, which are the major currencies for supplies.
This brings the group’s earnings for the nine months ended September to $5.7 million, 45.0% lower y-o-y.
Hyphens Pharma’s 3QFY2023 revenue stayed stable at $42.8 million, a marginal dip of 0.1% compared to 3QFY2022.
However, the company’s gross profit decreased by 11.9% or S$2.0 million from $17.2 million in 3QFY2023 to $15.2 million in 3QFY2023. Gross profit margin also fell 4.8 percentage points to 35.4% for the period as the result of inflationary cost pressures.
Year-to-date, revenue from the company’s specialty pharma principals segment decreased by 8.3%. This was due to the cessation of Biosensors products distributorship at the end of 2022 and the disruption in shipments of certain key products in 2023, and partially offset by sales from a new distributorship with Laboratoires Gilbert S.A.S.
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Revenue from Hyphens Pharma’s medical hypermart and digital segment also declined by 1.7%, although revenue from proprietary brands segment improved by 3.9%, contributed by the overall higher demand for Ceradan dermatological products and Ocean Health health supplements.
The company says it is “delighted” to observe the continuous growth of our proprietary brands, Ceradan and Ocean Health. “This sustained growth underscores the inherent value of our brand equity and reinforces our commitment to strengthening our presence in existing markets.”
“Our unwavering dedication to this strategy will persist, complemented by our proactive pursuit of new international partnerships to explore untapped markets. Additionally, we will continue to channel our investments into innovations, aiming to provide more products and better products to our customers,” it adds.
Hyphens Pharma also announced the acquisition of the remaining stake in Ardence Pharma in October, noting it believes inorganic growth through strategic acquisition will continue to serve as a strong growth engine for the business. “We are experienced in post-acquisition integration, and we believe that greater value will be released from the synergy between Hyphens and Ardence Pharma.”
In its outlook, the company highlighted the challenges it has faced in a volatile global economic landscape, with supply chain disruptions significantly impacting product availability. However, it notes that it has observed a gradual recovery in product supplies in 3QFY2023, and expects further improvements by the end of the year.
“The group’s strong financial position provides a solid foundation, enabling it to withstand challenges and capitalize on relevant opportunities aligned with its business strategy,” says Hyphens Pharma.
Shares in Hyphens Pharma closed flat at 28 cents on Nov 9.
