Phytopharma’s 2020 profit falls 3.35 per cent
Phytopharma’s 2020 profit falls 3.35 per cent
National Phytopharma JSC reported a consolidated after-tax profit of VND63.392 billion ($2.76 million) in 2020 amid the serious development of COVID-19, down 3.35 per cent on-year.
Phytopharma
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In the fourth quarter of the year, Phytopharma’s consolidated after-tax profit dropped 17.9 per cent from the same period last year. The company blamed the fall mainly on the decrease in profit from its units and a fall in commercial discounts from suppliers.
The company made a consolidated revenue of VND15.179 trillion ($659.96 million) last year, down 0.56 per cent on-year.
2020 broke the continuous growth momentum in revenue and profit in the recent five years.
Operating in pharmaceutical distribution, Phytopharma’s gross profit margin is said to be quite thin, at only 2.2 - 3.5 per cent. As a result, the after-tax profit of the company remains modest in comparison with its revenue. In the latest six years, the ratio of after-tax profit to revenue was less than 1 per cent. In spite of that, Phytopharma has still been paying dividends to shareholders annually.
Currently, Phytopharma is the distributor of many multinational corporations, including Pfizer, Zuellig Pharma, and DKSH. In July 2020, Phytopharma signed a pharmaceutical distribution partnership with AstraZeneca Vietnam Co., Ltd.
In 2008-2018, Phytopharma increased its charter capital to VND254.6 billion ($11 million). The state's holding represented by Vietnam Pharmaceutical Corporation (Vinapharm) has been decreasing from 17.68 per cent in 2015 to 9.9 per cent by the end of 2019.
