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Hyphens Q2 profit up 32% on robust sales of skin health products, supplements
AN increase in sales in proprietary brands gave a boost to Hyphens Pharma International's bottom line for the second quarter ended June 30, the Catalist-listed specialty pharmaceutical and consumer healthcare group said in results released on Thursday night.
Net profit after tax rose 32 per cent to S$2.2 million for the three months, from S$1.6 million a year ago, amid higher revenue and other income, which were partially offset by higher distribution costs and higher administrative expenses.
Earnings per share stood at 0.72 Singapore cent for the quarter, up from 0.52 cent in the corresponding period last year.
Revenue edged up 4.1 per cent year on year to S$30.2 million for the three months, from S$29 million previously.
The revenue growth was led by an increase in sales in the proprietary brands segment, which grew 24 per cent, thanks to stronger demand for dermatological products under the Ceradan brand as well as nutritional supplements under the Ocean Health brand.
Sales in the specialty pharma principals segment also increased by 2.5 per cent during the quarter.
The group saw a slowdown in demand from the medical channel across the regions in Q2, due to the control measures in each country in response to the novel coronavirus pandemic.
However, there was a "significant" increase in demand from the retail and online channels, especially in Singapore, Hyphens said.
It noted that the recovery of market demand has been inconsistent and unpredictable, and any further lockdown measures will have a negative impact on the group's business.
Meanwhile, Hyphens has continued to grow its skin health portfolio. It received a patent in the UK for Ceradan Advanced, a next-generation emollient therapy scientifically formulated for eczema-prone skin conditions. The group will continue to undertake further clinical developments to reinforce the Ceradan brand's positioning.
Hyphens has also expanded the skin health portfolio to include hair growth products, by acquiring CG 210, a patented topical botanical hair growth-promoting agent.
For the first half of the year, net profit after tax increased 39.8 per cent on the year to S$4.3 million, while revenue was up 10.1 per cent to S$61.6 million.
All three of the group's business segments contributed to the half-year revenue increase, with proprietary brands leading with a 29.8 per cent growth. The medical hypermart and digital segment also contributed 8.2 per cent more revenue, compared with a year ago.
No dividend was declared for the six months, the same as a year ago. "On the grounds of prudence, the board will review the dividend payout after the close of the financial year," Hyphens said.
The company on Thursday reiterated its plans to enhance its service offering to capture the growing opportunities in telemedicine.
"We will speed up our investment in e-commerce for our consumer healthcare brands and step up digital engagement with medical professionals," it said.
Aside from going digital, Hyphens is also actively pursuing prospective partners in its efforts to internationalise to other parts of Asia for its proprietary brands.
Hyphens shares fell 6.4 per cent or 3.5 Singapore cents to trade at 51 cents as at the midday break on Friday.