Hyphens Pharma International has reported earnings of $1.9 million for the 1HFY2025 ended June 30, down 66.3% y-o-y.
Revenue for 1HFY2025 declined 10.1% y-o-y to $89.5 million, and profit before tax declined 61.3% y-o-y to $2.9 million.
The healthcare group says that the revenue decrease was due to reduced revenue from the Pharmaceutical and Medical Aesthetics segment and Digital Platform and E-pharmacy segment, which saw a decline in revenue of 18.9% and 5.9% y-o-y respectively.
This was mitigated by the revenue increase in the Proprietary Brands segment, which grew 22.5% y-o-y with the expansion of its portfolio with the addition of Visiopro, Fenosup, and higher demand for Ceradan dermatological products and Ocean Health health supplements.
Overall gross profit rose 1.5% y-o-y due to sales mix optimization.
Distribution costs for 1HFY2025 increased 6.4% y-o-y, administrative expenses rose 6.8% y-o-y, and other losses increased to $4.7 million due to foreign exchange translation losses from a stronger Euro against a weaker Indonesian rupiah and Vietnamese dong.
See also: GuocoLand posts lower FY2025 on allowances in China; plans to pay a higher dividend
The above reasons have led to earnings decreasing y-o-y.
During the 1HFY2025, the group completed tranche 2 of its Ardence Pharma acquisition, acquiring an additional 17% shareholding and increasing its total stake in the company to 82%.
The group expects the operating environment to remain challenging — a key challenge is the Asean currency depreciation against the Euro which is its primary supplier payment currency.
See also: Tiong Woon earnings for full year 2025 up 6% y-o-y to $19.2 mil
Gross margin has been impacted due to currency mismatch as procurement is foreign currency-denominated while revenues are primarily generated in local currencies.
Shares in Hyphens Pharma closed flat at 33.5 cents on Aug 13.
