AsemconnectVietnam - Anticipating difficulties from the export market, while the operation of the new factory will increase depreciation costs, Danapha Pharmaceutical Joint Stock Company (Danapha, code DAN) expects pre-tax profit in 2025 to decrease by more than 30% compared to 2024.

Business results in 2024 are within expectations
In 2024, in the context of many fluctuations in the world's political economy, Danapha's business results were significantly affected.
According to the audited financial report, in 2024, Danapha achieved net revenue of VND564.7 billion, down VND11.4 billion; total pre-tax profit of VND93.3 billion, down VND1.7 billion; After-tax profit of VND70 billion, down VND6.6 billion compared to 2023.
This enterprise anticipated the difficulties, so it set appropriate targets from the beginning of 2024: revenue of VND545 billion, pre-tax profit of VND77 billion, down VND53.5 billion and more than VND18 billion respectively compared to the level achieved in 2023. Thanks to that, at the end of 2024, although revenues decreased, revenue still reached 103.6% of the plan, pre-tax profit reached 121.2% of the plan.
According to Danapha, for the hospital bidding channel (ETC), in 2024, the enterprise's business system will promote the implementation of winning bid packages and the winning bid results at localities and hospitals will be better than the old bid packages. The ETC channel business system has been bidding in Group 2 GMP-EU on the local drug bidding channel and the national drug bidding channel, helping businesses expand their product groups, as well as contributing a large part of sales to the growth of ETC channel revenue. In addition, the retail distribution channel and exclusive distribution in 2024 increased by 21.12% compared to 2023.
However, Danapha's total revenue and profit decreased when the export channel in 2024 did not have outstanding growth like in 2023, mainly due to the impact of the geopolitical situation in the world.
In terms of investment activities, in the past year, Danapha has put into operation a number of important items in Phase 1 and part of Phase 2 of the Pharmaceutical Manufacturing Factory and High-Tech Research and Development Center project with a total investment of VND1,495.7 billion in Da Nang High-Tech Park.
In which, Phase 1 (OSD high-tech pharmaceutical factory) has put into use the following items: OSD pill factory and quality assurance (QA) and quality control (QC) departments. Phase 2 (Pharmaceutical factory and High-tech research and development center) has put into use the following items: High-tech research and development center, warehouse, auxiliary items, infrastructure and drainage items in phase 2. Particularly, the item of the factory producing injections, water, external use, and balm is currently installing machinery and equipment, expected to be put into operation at the end of the second quarter of 2025. For Phase 3 - Factory producing soft capsules, health protection foods and solid tablets (OSD), with a capacity of 500 million units/year, the 2024 Danapha shareholders' meeting has approved a resolution to invest in the construction of this Phase. Currently, the rough construction has been basically completed and the next finishing steps are being implemented.
By the end of 2024, Danapha had total assets of VND1,596.1 billion, including VND1,028.9 billion in long-term assets and VND 567.2 billion in short-term assets. In contrast, the enterprise had VND831 billion in liabilities, including VND400.2 billion in short-term debt and VND430.8 billion in long-term debt. Thus, Danapha's equity is VND765 billion, of which the owner's contributed capital is nearly VND209.4 billion, corresponding to more than 20.9 million outstanding shares.
In total assets, Danapha recorded VND895.8 billion in unfinished construction assets from the construction of 2 projects: Pharmaceutical factory and High-tech research and development center and Office combined with tourist apartments.
Continued to reduce profit target for 2025
In 2025, Danapha plans to achieve revenue of VND569.8 billion, VND24.8 billion higher than the plan for 2024, but VND2.37 billion lower than the actual level in 2024. This year's pre-tax profit target is VND65 billion, VND12 billion lower than last year's plan and VND28.3 billion lower than last year's actual level.
Mr. Le Thang Binh, General Director of Danapha, explained that pre-tax profit in 2025 is estimated to decrease by 30.35% compared to the actual level in 2024 because the Company plans to put Phase 1 - Pharmaceutical Manufacturing Factory and High-Tech Research and Development Center into operation. This will lead to increased depreciation costs, directly affecting the Company's profits. In addition, the company's export revenue is forecast to continue to face difficulties, possibly decreasing by 10% compared to 2024, also affecting the profit target.
In the first quarter of 2025, Danapha achieved a profit after tax of VND16.6 billion, down 24.3% compared to the same period in 2024, equivalent to a decrease of VND5.3 billion.
According to Mr. Binh, in order to achieve the business goals in 2025, Danapha plans to expand export markets such as Laos, Cambodia, Thailand, Japan, Korea, etc. through distributors, while maintaining and developing the ETC channel and developing new products.
In addition, this year, Danapha will gradually complete the rough construction of the Office and Tourist Apartment project building. This project has a total investment of VND222 billion, started in December 2023, has a scale of 3 basements and 15 floors above ground, and is expected to be completed and put into use from the second quarter of 2026.
N.Nga
Source: VITIC/Tinnhanhchungkhoan