I. REPORT ON BUSINESS AND PRODUCTION RESULTS IN AUGUST 2021
(Unit: Billion dongs)
|Criteria||August 2021||YTD 31st Aug 2021||% plan of 2021||YTD 31st Aug 2020||Growth rate|
|Total net revenue and incomes||94.1||793.9||51.9%||786.8||0.9%|
|Profit before tax||17.2||144.8||49.9%||145||-0.1%|
Total net revenue and incomes in August 2021 of Imexpharm attained VND 94.1 billion, reducing 11.8% in comparison with the number of August in 2020. Whilst net revenue of the Company was VND 93.8 billion and dropped 11.9%. Imexpharm’s profit before tax in August 2021 reached VND 17.2 billion but declined 14.4% year over year.
Total net revenue and incomes accumulated in the first 8 months of 2021 were VND 793.9 billion, which increased 0.9% compared to the corresponding period of last year as well as met 51.9% of the total annual plan. However, net revenue was VND 779.3 billion and went down 0.2% year over year. Profit before tax witnessed a slight decrease of 0.1%. Imexpharm sales have been extremely influenced by social distancing orders and travel restrictions applied since July and plummeted in August, which was leading to the fall of total profit before tax of the first 8 months in 2021 but it was just a minor reduction. The proportions of OTC and ETC in August were kept at 61% and 39% respectively. Imexpharm products have been playing a vital role in revenue structure with a high portion of 95%. Revenue of franchising and other products both experienced a downward trend compared to the same period of the previous year.
Cost of goods sold in the first 8 months of 2021 was reduced by 2.4%, which is higher than the falling speed of total net revenue. Imexpharm has been implementing policies to tightly control selling and administrative expenses. Nevertheless, selling expenses still grew 12.8% due to sales support programs launched before the outbreaks of the pandemic while administrative expenses only rose by 1.9%.
II. IMPSTOCK IN AUGUST 2021
In August 2021, there were 426,000 shares of IMP traded, all transactions were conducted via order matching on the Stock exchange and there was no put through the deal. On the whole, IMP witnessed more transactions in August than in July 2021 and the volume increased by 1.4 times. Transactions in August mostly fell into the ending days of the month while the last 5 days of the month accounted for one-half of the total transaction amount. However, in comparison with August of 2020, IMP transaction volume in August 2021 was only equal to one-tenths. In case that only order matching deals were counted, the amount of transacted stocks in August 2021 is equal to approximately 16% of the total volume of August 2020.
III. IMEXPHARM PLANS FOR SEPTEMBER 2021
Imexpharm business in August was stagnated because of the social distancing orders. Travels in the Southern provinces were encountering many difficulties; therefore, the ETC channel witnessed huge impacts due to the fact that patients have delayed visiting hospitals. However, Imexpharm always fully complies with preventive measures against the pandemic of the local authorities as well as put the safety and health of employees on the top priority.
The situation induced by the pandemic in the Southern provinces is gradually improved, however, this is still very complicated. Sales of Imexpharm could only be recovered when such provinces reopen. The current circumstance in the view of the Management Board is very challenging, especially when Imexpharm owns 20 sales branches nationwide and the risk of business disruption always exists.
Inventories and account receivables are forecasted to increase in the ending months of the year as the Company has to stockpile to tackle the problem of disruption of the global supply chain to ensure business continuity and the operations just recover after a long time of stagnation. Hence, the Company keeps monitoring inventories and account receivables to mitigate risks and ensure that the Company can achieve business and production targets.
IMP4 inspection schedule is on right track. Imexpharm is collaborating closely with consultants and partners to make sure that IMP4 would be accredited EU-GMP in Q4/2021 after the pandemic would be under controlled.
Productions followed the “3 in place” model is being implemented in IMP1,2,3 and strictly abide by preventive measures against the pandemic. The Company is also disseminating a message to all staff to obey the 5K criteria and protect themselves, colleagues as well as their relatives in compliance with the instructions of the Ministry of Health.