I. BUSINESS AND PRODUCTION PERFORMANCES IN May 2020
(Unit Measurement: billion dongs)
| Criteria |
May, 2020 |
YTD May 31st, 2020 |
% plan 2020 |
YTD May 31st, 2019 |
Growth rate |
| Total net revenue and income |
86.2 |
455.3 |
26% |
449.2 |
1.4% |
| Net revenue |
83.2 |
451.5 |
|
445.4 |
1.4% |
| Profit before tax |
15.5 |
77.4 |
29.8% |
71.6 |
8.1% |
Total net revenue and income of Imexpharm accumulated until the end of May, 2020 was 455.3 billion dong, which increased by 1.4% year over year. Revenue grew much more slowly than expectation; therefore, total net revenue and income fulfilled about 26% of annual plan.
While total first 5-month profit of 2020 reached 77.4 billion dong, which rose 8.1% compared to the earlier year. Although profit growth rate is more positive than revenue but this figure met only 29.8% of year-target.
The pharmaceutical industry was also impacted by Covid-19 but there was a time lag due to essential products. In addition, the effects of the pandemic in the pharmaceutical industry were coming after other industries. However, enterprises have faced obstacles in terms of input material and general decrease in aggregate demand. During the time of social distance, the number of patients visiting hospitals declined dramatically; thus, ETC channel has encountered difficulties due to lower demand for hospitals. Besides, residences’ income is overall dropping due to influences of the epidemic so that demand for savings and cut expenditures have partially affected to revenue of firms in general and Imexpharm also bears these effects.
Imexpharm is controlling costs and input factors well. Cost of Goods Sold increased slightly by 0.9% in comparison with last year whereas total selling expenses fell 5.3% and administrative expenses went up inconsiderably by 0.4%.
It is predicted that business and operations are fluctuating for the next months because of material supplies and demand go down. Imexpharm expects growth impetus will be recovered by the end of quarter 3 and the beginning of quarter 4 of 2020.
II. IMP STOCK IN MAY 2020
IMP open price of the first round in May was 53,500 dong/share and the close price at final round of the month was 54,200 dong/share. Overall IMP did not witness many fluctuations in price. The total number of order matching shares was 903,410 while 20,000 shares were traded under put through the method according to stock exchange data. Especially, on May 29 Vietnam Securities Depository announced the ownership transferred from Dragon Capital group and other shareholders to SK Investment Vina III Pte, Ltd in accordance with Official Dispatch no. 3570/UBCK-PTTT of State Securities Commission dated May 28th, 2020. Currently, ownership rate of SK Investment in IMP was 24.94% charter capital and SK Investment is shareholders with the highest ownership rate at IMP.
III. Key Objectives in June 2020
In June, Imexpharm keeps controlling input materials, inventories and production plans to ensure sufficient goods for business operations. Expenses and account receivables are tightly controlled to maintain profit growth rate.
Additionally, the Company is preparing for EU-GMP accreditation at Binh Duong high tech factory (IMP4) in quarter 3 of 2020.