Shares in Hyphens Pharma have surged some 10.9% higher to 30 cents as at 10.50am following the announcement of its 3QFY2022 ended September results earlier on Nov 10.
In its 3QFY2022 business update, specialty pharmaceutical and consumer healthcare group Hyphens Pharma reported an almost three-fold y-o-y jump in its profit after tax to $4.0 million from $1.1 million a year ago.
This was a result from higher revenue, partially offset by increased distribution costs which rose in tandem with the higher sales achieved and increased R&D spending in the quarter.
Revenue for the quarter came in at $42.8 million, 46.7% higher from $29.1 million a year ago. The group noted that its newly acquired Novem group of companies contributed some $3.8 million in revenue this period.
Meanwhile, all three of the group’s business segments saw improvement.
Specialty pharma principals segment led the growth with 77.1% increase in revenue, with increased demand mainly in Singapore, Vietnam and Malaysia, coupled with sales contribution from Novem. Proprietary brands segment grew by 51.4%, contributed by higher demand for Ceradan and TDF dermatological products, Ocean Health health supplement products and Novem nutraceutical products. Revenue from the medical hypermart and digital segment remained stable with a growth of 2.6%.
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Correspondingly, gross profit increased to $17.2 million, 61.7% higher than $10.6 million the same period last year. Gross profit margin improved from 36.5% in 3QFY2021 to 40.2% in 3QFY2022.
On a 9MFY2022 basis, revenue saw a 32.8% y-o-y increase to $123.5 million, which brought gross profit to $48.3 million, representing a 36.4% increase from the previous year. Gross profit margin came in at 39.1%, slightly higher than 38.1% a year ago.
Hence, net profit after tax for the 9MFY2022 period was 90.3% higher y-o-y at $10.3 million.
On the outlook, the group will continue to nurture its proprietary brands that have so far enjoyed robust growth in sales and brand equity. It will also be seeking new international partnership opportunities to bring these brands to new markets. It will also invest in innovation to develop new and improved products under its brands.
Additionally, the group is accelerating its investment in digital initiatives to spearhead its business expansion in its medical hypermart and digital segment, which includes developing an integrated healthtech platform, that will incorporate various healthtech solutions to cater to healthcare stakeholders in Singapore and the Asia-Pacific region.
Following the success acquisition of Novem that has contributed positively to the group’s financials, it says that it will continue to look out for acquisition opportunities.
Overall, with the resurgence of Covid-19 cases, volatility of local and foreign currencies, as well as volatile macroeconomic environment, the group says that it will continue to remain vigilant, diligent, and agile in navigating the challenges of a volatile operating environment that impacts all market participants. It believes that its sound financial position will put it in good stead to seize any opportunities that may arise and are relevant to its business strategy.
Photo: The Edge Singapore/ Albert Chua
