I. BUSINESS AND PRODUCTION PERFORMANCES IN August 2020
(Unit Measurement: billion dongs)
|Criteria||August 2020||YTD August 31st, 2020||% plan of 2020||YTD August 31st, 2019||Growth rate|
|Total net revenue and income||106.7||786.8||45%||752.4||4.6%|
|Profit before tax||20.1||145||55.8%||113.4||27.9%|
Total net revenue and income of Imexpharm in the first 8 months attained 786.8 billion dong, which increased by 4.6% year over year. In comparison with the target set by the Annual General Meeting of Shareholders, Imexpharm’s total net revenue and income accumulated till the end of August met only 45%.
In August, The Board of Directors has proposed the plan for business and production in the end months of 2020, in which total net revenue and income would be 1,575 billion dongs. This adjustment to decrease the first target is caused by adverse impacts of the Covid-19 pandemic; however, the profit plan is kept unchanged. If selecting the estimation of the Board of Directors in August as the baseline, the 8-month revenue of Imexpharm reached about 50% of the target for 2020.
ETC channel still grew positively by 69% and accounted for 41% in total revenue structure. On the contrary, OTC dropped by 11% compared to the earlier year. OTC channel in recent years has not increased as significantly as it performed in the tenure from 2011 to 2015. Additionally, the plummet of aggregate demand induced by the pandemic contributed to making OTC business more struggling.
Total profit before tax of Imexpharm rose by 27.9% and met 55.8% of the annual plan. Profit increased considerably since Imexpharm continued to restructure the product portfolio and focus on key products with a high-profit margin. In addition, stockpiling raw materials at the beginning of 2020 also helped the Company mitigate the risk of price increase in raw material to profit margin. Besides, well controlling expenses have contributed to making a profit rise dramatically. In detail, selling expenses in 8 months felt by 13.2%, administrative expenses declined slightly by 1%, and the cost of goods sold only went up by 3.3% in comparison with the revenue growth rate of 5.1%.
II. IMP STOCK IN AUGUST 2020
IMP stocks in August were very liquid. In the month, there were 4,229,482 shares traded. In which, 2,661,450 shares were transacted via order matching and 1,568,032 one was traded by put-through. The number of ordered marching stocks in August 2020 was 8.7 times as high as the figure of the corresponding month of 2019. IMP in particular and other pharmaceutical stocks, in general, have been attracting many investors’ attention in the context of the pandemic that is moving complicatedly. In addition, the trust in quick recovery of essential productions after the COVID 19 pandemic has constituted to make pharmaceutical industry stocks more prominent.
III. Key Objectives in September 2020
The pandemic in Vietnam has been initially controlled; therefore, Imexpharm has planned to restart marketing activities interrupted by Covid-19 at the end of the year to boost the OTC business. However, implementations of these programs have to pertain to the objective: tightly control expenses and account receivables to ensure the profit margin meets the target and has sufficient working capital for the Company in the rest 4 months of 2020.
Although the pandemic domestically has a trend to subside, it is still spreading around the world. Hence, protections and fights against the pandemic have to be maintained and reinforced. The dissemination of protection against being infected by Covid-19 and the actions to tackle such a pandemic have been put as top priorities among the Company’s operational objectives until the end of 2020.