Hyphens Pharma Reports Solid Q3 and 9M Performance Amid Higher Costs

Hyphens Pharma International Limited (SGX: 201735688C) has released its quarterly business update for the third quarter (3Q2024) and the nine months ending September 30, 2024 (9M2024). Despite facing increased operational costs, the company has demonstrated robust revenue growth, driven by strong sales in its core markets and segments.

Key Financial Highlights

• 3Q2024 Revenue: S\$43.9 million (up 2.5% from 3Q2023)
• 9M2024 Revenue: S\$143.5 million (up 22.1% from 9M2023)
• 3Q2024 Gross Profit: S\$17.0 million (up 12.1% from 3Q2023)
• 9M2024 Gross Profit: S\$51.8 million (up 19.9% from 9M2023)
• 3Q2024 Net Profit After Tax: S\$2.0 million (down 5.6% from 3Q2023)
• 9M2024 Net Profit After Tax: S\$7.5 million (up 32.6% from 9M2023)

Revenue Drivers

Several factors contributed to the revenue growth:

1. Specialty Pharma Principals Segment: Revenue increased by 32.6%, driven by new distributorships with Laboratoires Gilbert S.A.S and heightened sales from the medical aesthetics range.
2. Proprietary Brands Segment: Revenue improved by 16.9%, bolstered by higher sales of Ceradan® dermatological products and Ocean Health® health supplements.
3. Medical Hypermart and Digital Segment: Revenue rose by 3.0%.

Operational Costs and Profit Margins

Despite the revenue growth, the company faced higher distribution costs, increased manpower expenses, and rising administrative costs. The gross profit margin for 3Q2024 was 38.7%, an improvement from 35.4% in 3Q2023. However, the gross profit margin for 9M2024 slightly declined to 36.1% from 36.7% in 9M2023.

Foreign Exchange Gains

The company benefited from favorable local currency exchange rate movements against the USD and EURO, which are the major currencies for supplies.

Implications for Shareholders

Shareholders should note the significant revenue growth, which may positively influence the company’s share value. However, the increase in operational costs and the slight decline in the gross profit margin over nine months could be a concern. The company’s ability to manage these costs while sustaining revenue growth will be crucial for future performance.

BY ORDER OF THE BOARD
Flora Zhang
Chief Financial Officer
12 November 2024

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult a financial advisor before making any investment decisions.

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