Imexpharm achieves VND594 billion in Q1 net revenue

On April 18, 2025, Imexpharm Corporation (HOSE: IMP) announced its Q1 2025 results, delivering a strong performance despite a highly volatile business environment, with all key metrics exceeding quarterly targets.

Financial highlights

Imexpharm demonstrated strong growth momentum from the start of the year, underpinned by solid revenue expansion, sustained margin strength, and enhanced operational efficiency. Gross revenue climbed 23 per cent YoY to VND672 billion ($26.88 million), achieving 23 per cent of the full-year target. Growth was supported by strong performance across both OTC and ETC channels and a broad, market-responsive portfolio.

Revenue from antibiotics continued to grow, while the cough medicine segment surged 42 per cent YoY, contributing 11 per cent of total revenue amid a spike in respiratory illnesses.

Profit before tax reached VND95 billion, driven by top-line growth and effective cost control, even as selling expenses rose with increased brand marketing across both channels. EBITDA grew 16 per cent YoY to VND126 billion ($5.04 million), with EBITDA margin steady at 21 per cent, reflecting stable operations and productivity across EU-GMP-certified factories.

The OTC segment rebounded strongly, particularly in Northern Vietnam. OTC revenue rose 25 per cent YoY, with the Northern market up 69 per cent, contributing 12 per cent of total OTC sales. Customer transactions increased 30 per cent YoY, reflecting successful localized promotions and brand building.

The ETC channel saw 27 per cent revenue growth, driven by deeper hospital engagement and fulfillment of national tender contracts. Imexpharm’s delivery of high-quality products further cemented its reputation in the healthcare sector.

Gross profit grew 30 per cent, outpacing revenue growth. COGS rose only 16 per cent, thanks to optimized production and promotional costs. The gross profit margin improved to 40 per cent, the highest quarterly rate since Q1 2024. Production volume at the IMP4 factory recorded a126 per cent increase, more than doubling YoY.

Strategic and ESG initiatives

On March 14, 2025, Imexpharm joined Da Lat’s tree-planting initiative as part of Lam Dong’s goal of planting 50 million trees by 2025. The activity coincided with the company’s 2025 Sales & Marketing Congress themed “Tiên Phong Dẫn Lối” (Pioneering the Way Forward), underscoring its commitment to sustainability.

The company was also named among the Top 10 ESG Green Enterprises in the Pharmaceutical - Medical Device Sector, an initiative led by Viet Research in collaboration with Finance & Investment Newspaper (Ministry of Finance), recognizing its ESG efforts aligned with international benchmarks.

In late March 2025, Imexpharm reaffirmed its dedication to the medical community through its sponsorship of two key scientific events in March: the 41st Annual ENT Scientific Conference in Da Nang and the 20th anniversary symposium of Thien Hanh General Hospital in Buon Ma Thuot.

In early April, Imexpharm hosted a national online symposium titled “Strategic Use of Antibiotics in Respiratory Infections Amid Multidrug Resistance”, drawing healthcare professionals from across the country. The event, which offered CPE credits, reflected the company’s thought leadership in rational antibiotic use and clinical education. A follow-up symposium is planned for late April.

In Q1, Imexpharm introduced 9 new SKUs and maintained 133 R&D projects in its innovation pipeline. The Company also released its 2024 Annual Report, outlining past achievements and future strategies.

Market outlook

Vietnam’s pharmaceutical sector is poised for steady growth, bolstered by demographic shifts and increasing healthcare investments. Demand is expected to rise for EU-GMP-certified antibiotics and treatments for chronic conditions such as diabetes, cardiovascular diseases, and obesity. Domestic companies focused on innovation stand to benefit from evolving lifestyles and supportive regulatory reforms.

Commenting on the results, People’s Doctor, Pharmacist Tran Thi Dao, General Director of Imexpharm, said: “Imexpharm had an exceptional start to 2025, with strong revenue and profit growth and a record gross margin of 40 per cent. Our targeted investments in the Northern market paid off, and we are now focusing on high-tech, high-value products with advanced efficacy. This pivot will enhance profit margins and reinforce our long-term growth.”

The company will present its strategic roadmap for 2025, including innovation, market expansion, and value creation, at its Annual General Meeting of Shareholders on April 25, 2025.