I. BUSINESS AND PRODUCTION PERFORMANCES IN MARCH 2020
(Unit Measurement: billion dongs)
|Criteria||April 2020||YTD April 30th, 2020||% plan 2020||YTD April 30th, 2019||Growth rate|
|Total net revenue and income||64.8||369.1||21.1%||349.6||5.6%|
|Profit before tax||10.5||61.9||23.8%||56.9||8.8%|
Total net revenue and income in April of Imexpharm reached 64.6 billion dong, dropped by 12% compared to last year. Profit before tax decreased 8.7% in comparison with April of 2019. In April, once social distance was forced to implement, medical centers were operating with lower efficiency than usual; therefore, a decline in drug consumption was explainable.
However, total net revenue and income accumulated until April 30th, 2020 of Imexpharm still achieved 368.1 billion dong, which increased 5.6% year over year. While the rise in net revenue was 6.4%. Products manufactured and distributed by Imexpharm accounted for 89.3% in revenue structure. Total profit before tax was 61.9 billion dongs, which went up by 8.8% compared to the first four months of 2019. Imexpharm has fulfilled 21.1% of the revenue plan and 23.8% of the profit plan. The Company has to boost sales in the second half of 2020 to accomplish the proposed targets.
The cost of goods sold in 4 months of 2020 grew 7.4% year over year. On the other hand, selling expenses and administrative expenses felt by 2.8% and 4.1% respectively. Material prices have an upward trend due to the lockdown situation in pharmaceutical material manufacture countries. Hence, the cost of goods sold is predicted to increase in the last months of 2020. Besides, social distance, travel, and gathering restrictions in Vietnam in the first months of 2020 also caused operating expenses to be reduced.
Up to the present, growth rates of OTC and ETC were 5% and 77.7% respectively compared to the figures of 2019. OTC increased sharply in Mar because of drug stockpiling demand but this was temporary and now, there is a strong competition in this channel, as well as the general growth rate of the market, which is slowing down. Whereas Imexpharm is expecting high contributions of ETC in total revenue to achieve targets of 2020.
Imexpharm considered that Covid-19 pandemic was positively controlled, domestic pharmaceutical market would be recovered to grow; however, unpredicted movements of the pandemic all around the world; especially in countries producing pharmaceutical raw materials would significantly impact on profit margin because most materials of pharmaceutical companies were imported.
II. IMP STOCK IN APRIL 2020
Opening price of IMP in the first round of April was 42,400 dong/share, then IMP price increased gradually and closed at the price of 53.500 dong/share on April 29th, 2020. In April, IMP recovered strongly after plummeting rounds in Mar due to the adverse effects of the pandemic. In detail, IMP price rose 26.2% in April. Total order matching transition volume was 1,028,360 shares while 200,000 shares were traded under put through the method.
III. Key Objectives in Q2/2020
Continuously follow the status of input raw material is the most significant objective in Q2 in order to ensure the stability of production and business in the second half of the year. In addition, tight control in expenditures is applied to assure the profit target of the Company in 2020.
On May 30th, 2020, Imexpharm will hold Annual General Meeting of Shareholders 2020 in Cao Lanh after the postpone due to the pandemic. Functional departments are actively coordinating in preparation to ensure that the Meeting will be organized successfully.
Although business and production activities are gradually recovered after the time of social distance and, the pandemic in Vietnam is well controlled; Imexpharm Board of Executive continues to force implementation of protection and fighting against the pandemic in the whole company followed the Ministry of Health recommendations with the objective that health and safety are first.