Hyphens Pharma Reports Strong Growth with 22.1% Revenue Increase in 9M2024

Hyphens Pharma International Limited has released their quarterly business update for the third quarter and nine months ended 30 September 2024, showcasing a remarkable improvement in their financial performance.

Key Financial Highlights

For the third quarter of 2024 (3Q2024), the Group reported a revenue of S\$43.9 million, marking a 2.5% increase from S\$42.8 million in the same period last year (3Q2023). Gross profit for the quarter rose by 12.1% to S\$17.0 million, with a gross profit margin improvement from 35.4% to 38.7%. Despite these gains, the net profit after tax for 3Q2024 saw a slight decline of 5.6%, amounting to S\$2.0 million.

For the nine months ended 30 September 2024 (9M2024), the Group’s revenue surged by 22.1% to S\$143.5 million compared to S\$117.5 million in 9M2023. Gross profit increased by 19.9% to S\$51.8 million, although the gross profit margin slightly decreased from 36.7% to 36.1%. Net profit after tax saw a significant rise of 32.6%, reaching S\$7.5 million.

Important Factors Influencing Growth

The revenue growth for 9M2024 was driven by several key factors:

• A 32.6% increase in the specialty pharma principals segment, primarily due to new distributorship with Laboratoires Gilbert S.A.S and higher sales from the medical aesthetics range.
• Improved performance in the proprietary brands segment, with a 16.9% rise in sales contributed by Ceradan® dermatological products and Ocean Health® health supplements.
• A 3.0% increase in revenue from the medical hypermart and digital segment.

Despite the positive revenue and gross profit trends, the Group faced higher distribution costs, increased manpower expenses, and administrative costs. However, these were partially offset by favorable foreign exchange gains due to local currency movements against USD and EURO.

Shareholder Considerations

Shareholders should note the overall financial health and growth trajectory of Hyphens Pharma. The significant revenue and profit increases are potential indicators of future growth and profitability. However, the slight decline in net profit after tax for the third quarter and the minor drop in gross profit margin over nine months highlight areas to monitor.

Given the solid performance and strategic growth in key segments, these updates could have a positive impact on share prices. Investors may find the increased revenue and net profit after tax as compelling reasons to hold or acquire shares in Hyphens Pharma.

Disclaimer: This article is based on the financial report provided by Hyphens Pharma International Limited. It does not constitute financial advice, and investors should perform their own research or consult with a financial advisor before making any investment decisions.