However, gross margin decreased to 36.3% due to ongoing cost pressures and higher sales mix of lower margin products. Net profit after tax surged by 97.6% to $2.7 million, in line with higher revenue.
To this end, Ng and Chan’s positive outlook remains unchanged, expecting the announced initiatives to proceed as planned.
The proprietary brands segment, for instance, is anticipated to further its market expansion and penetration. This is highlighted by the partnership with 7-Eleven to offer Ocean health supplements at selected stores in Singapore, as well as the introduction of the Ceradan range into five middle eastern markets through an exclusive distributorship with Cooper Pharma.
“Additionally, the recent licensing of Wynzora Cream — a proven treatment for plaque psoriasis in the US and Europe — for Asean countries from MC2 Therapeutics bolsters the segment’s growth potential. The specialty pharma portfolio continues to expand with the introduction of new products, including offerings from Laboratoires Gilbert and products from the medical aesthetics portfolio,” the analysts add.
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Aside from easing inventory levels from distributors, SAC Capital remains cognisant of the uncertainties stemming from inflationary pressures leading to increased supply costs.
As at 10am, shares in Hyphens Pharma are trading flat at 29 cents.
