Pharmaceutical company, Hyphens Pharma, has reported earnings of $8.57 million for its FY2023 ended Dec 31, 2023, down from FY2022’s earnings of $11.3 million, a 24.5% drop y-o-y.
This translates to an earnings per share (EPS) of 2.77 cents, from FY2022’s 3.66 cents.
Meanwhile, the company’s FY2023 revenue of $170.6 million was a 5.1% growth from FY2022’s $162.3 million, while its 2HFY2023 revenue of $95.9 million was a 28.4% increase from the previous half’s $74.7 million.
The growth in revenue was attributed to the company’s revenue increase of 6.8% in its specialty pharma principals segment, as well as increased demand from Malaysia, Indonesia and Philippines and the export sales of its products from Laboratoires Gilbert S.A.S..
This helped offset the loss in revenue from the loss incurred by the discontinued Biosensors distributorship in 2022.
The company also saw its proprietary brands segment’s revenue grow by 9.8% due to a higher demand for its Ceradan dermatological products, Ocean Health health supplement products, and Novem nutraceutical products. However, revenue from the medical hypermart and digital segment, dipped slightly by 1.2%.
The majority of the group’s losses stemmed from the 9.2% increase to $109.7 million in cost of sales for the FY2023, from $99.5 million the year before.
While the FY2023 gross profit saw a decline of 1.4% to $61.9 million from the previous year’s $62.8 million, the 2HFY2023 gross profit saw an increase of 6.8% to $33.9 million from the previous half’s $31.7 million.
Following this, Hyphens Pharma’s board of directors is proposing a final dividend of 0.86 cents, subject to shareholders’ approval at the upcoming annual general meeting. If approved, once combined with the special interim dividend of 3.60 cents paid out in 2023, the total dividend for FY2023 will amount to 4.46 cents.
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Moving forward, the company is focused on continuing to unlock the brand value of its proprietary brands, and in 2024, will continue the effort to reach out to a wider group of consumers and provide them with a rich selection of products.
Hyphens Pharma’s specialty pharma portfolio will also see an addition of new products that were in the commercialisation stage in FY2023. More specifically, the company is currently working towards the commercialisation of Plinest in other regional countries.
The company’s subsidiary, DocMed, has also launched its business in Vietnam and Malaysia in 2023, and will continue to proactively seek strategic collaboration opportunities with like-minded partners in the region, aiming to develop an integrated digital healthtech platform.
The company will also continue to seek out partnership opportunities to enter new markets, widen its product offerings and bring innovation into the business.
“Even with challenging macroeconomic conditions and supply chain disruptions, we have achieved a creditable set of financial results for FY2023. This is especially so with regards to the strong recovery we have been able to achieve in the second half of the year. I would like to credit this to a determined and diligent management team who fought and delivered against the backdrop of the challenging environment. While staying focused on delivering the near term result, we continued to pursue strategic action and invest in long term business development,” says Lim See Wah, executive chairman and CEO of Hyphens Pharma.
As at 2.55 pm, shares in Hyphens Pharma are trading 0.5 cents higher or 1.79% up at 28 cents on Feb 28.
