Improved sales boost Hyphens Pharma Q1 profit by 97.6%

The Specialty Pharma Principals led the increase in revenue.

Hyphens Pharma International nearly doubled its net profit for the first quarter of 2024 (Q1 2024) to $2.7m backed by robust revenue during the period. 

In a bourse filing, the company said revenue was up 44.4% to $48m in Q1 2024 driven by improved sales in all its segments, particularly its Specialty Pharma Principals unit.

“The Specialty Pharma portfolio continues to serve as the primary catalyst for growth in Q1 2024. It has rebounded from supply chain disruptions in H1 2023,” the company noted.

Year-on-year, Hyphens Pharma said this segment has shown significant growth. The introduction of new product portfolios during the latter half of 2023, including offerings from Laboratoires Gilbert S.A.S. and products from the Medical Aesthetics portfolio, further boosts growth prospects for this segment, it added. 

“At the same time, we observed similar quarter-on-quarter trending with the Proprietary Brands segment, a reduction in quarter-on-quarter sales could be attributed to the same reason above,” the company said.

Hyphens Pharma noted the increase in revenue was partially offset by the increased distribution and marketing expenses which rose along with the improved sales.

The company’s gross profit also improved 32.8% to $17.4m during the quarter. However, the gross profit margin declined to 36.3% due to continued cost pressure and a higher sales mix of products carrying a lower margin.

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Recently, Hyphens Pharma announced its partnership with 7-Eleven to offer Ocean Health supplements at selected convenience stores in Singapore, the entrance of Ceradan range into five Middle Eastern markets through exclusive distributorship with Cooper Pharma S.A., and the licence of Wynzora Cream for ASEAN countries from MC2 Therapeutics. 

“The above achievements represent our key strategic focus for this segment, which is to further market penetration through widening distribution channels, expanding into new geographical markets, and actively acquiring new products for our ever-growing portfolio,” the company said. 

Hyphens Pharma said it also remains focused on its expansion through acquisitions, prioritising those that are aligned with its strategic goals.