Ahead of AGM, Imexpharm reported strong earnings in Q1 2025: Net revenue hits VND594 billion

Financial Highlights

First quarter performance reflects the Company’s ongoing strategic focus on strengthening its commercial model, enhancing product mix, and accelerating its role in Vietnam’s national healthcare agenda. Imexpharm recorded gross revenue of VND 672 billion in the first quarter of 2025, representing a 23% increase year-on-year. Net revenue rose 21% year-on-year to VND 594 billion, underpinned by strong performance across both the OTC and ETC channels, supported by a broad, market-responsive product portfolio. Revenue from antibiotics continued its upward trend, while the cough medicine segment - contributing 11% to total revenue - delivered a notable 42% year-on-year growth amid heightened demand during a season of widespread respiratory diseases.

The OTC channel delivered a strong rebound, reflecting the success of Imexpharm’s market strategies, particularly in Northern Vietnam. OTC revenue grew 25% year-on-year, with revenue from the Northern market surging 69%, contributing 12% of total OTC revenue. Consumer outreach continued to expand, driven by relentless localized promotional and brand marketing efforts. The region outperformed expectations, with the number of transacting customers increasing by 30% compared to the same period last year.

The ETC channel also posted impressive growth, with revenue rising 27% year-on-year. This performance was fueled by deeper engagement with hospital networks and a robust product portfolio aligned with evolving healthcare needs. In addition, Imexpharm commenced delivery of orders secured through national tenders, supplying high-quality medicines to healthcare facilities nationwide - reaffirming its long-standing reputation for excellence in quality and production capacity.

Gross profit increased by 30%, outpacing revenue growth, as cost of goods sold (COGS) was effectively managed, rising only 16% year-on-year. This improvement reflects enhanced manufacturing productivity and optimized promotional costs. Production ramped up across all EU-GMP certified factories, with IMP4 factory recording a remarkable 126% year-on-year increase in manufacturing volume. Gross profit margin improved to 40%, marking the highest quarterly level since the first quarter of 2024.

Profit before tax (PBT) reached VND 95 billion, up 23% year-on-year, supported by robust revenue growth and effective COGS management, despite increased selling expenses related to intensified brand marketing efforts across both the ETC (scientific engagement) and OTC (promotional campaigns) channels.

EBITDA rose 16% year-on-year to VND 126 billion. Growth was slightly moderated as depreciation and amortization expenses remained steady, reflecting stable operations across all factories. The EBITDA margin remained firm at 21%.

Business Highlights

On March 14, 2025, Imexpharm reinforced its sustainability agenda by participating in Da Lat’s tree-planting initiative, a key component of Lam Dong Province’s plan to plant 50 million trees by 2025. The initiative formed part of the 2025 Sales & Marketing Congress, held under the theme “Tiên Phong Dẫn Lối” (Pioneering the Way Forward), and exemplified the Company’s enduring commitment to community engagement and environmental stewardship.

Imexpharm was honored to be recognized among the Top 10 ESG Green Enterprises in the Pharmaceutical - Medical Device Sector (ESG10 - 2025), an initiative led by Viet Research in collaboration with Finance & Investment Newspaper (Ministry of Finance). The program aims to evaluate Vietnamese companies’ ESG commitments and implementation using international standards, while contributing to the development of a comprehensive ESG data system.

In late March 2025, Imexpharm reaffirmed its pioneering role and long-term commitment in nearly five decades of supporting Vietnam’s healthcare sector and communities by sponsoring two major medical science events: the 41st Annual ENT Scientific Conference (March 21–23 in Da Nang) and the Scientific Symposium marking the 20th anniversary of Thien Hanh General Hospital (March 27 in Buon Ma Thuot).

As part of its broader commitment to scientific leadership, Imexpharm hosted a nationally broadcast online symposium on April 10, 2025, titled: “Chiến lược sử dụng kháng sinh trong điều trị nhiễm khuẩn hô hấp giữa kỷ nguyên đa kháng” (Strategic Use of Antibiotics in Treatment of Respiratory Infections Amid the Era of Multidrug Resistance). The event convened prominent experts in pharmacy and respiratory medicine and offered Continuing Pharmacy Education (CPE) accreditation to participating pharmacists. With strong engagement from healthcare professionals across the country, the symposium reinforced Imexpharm’s leadership in advancing clinical dialogue and its role in supporting rational antibiotic use within Vietnam’s evolving healthcare landscape. Building on this momentum, the Company will continue its scientific outreach through a follow-up symposium scheduled for late April.

Panoramic view of Imexpharm’s tree handover ceremony with the Youth Union of Da Lat City, held at Lam Vien Square. Photo: Imexpharm.

The company has published its Annual Report 2024, highlighting the achievements of the past year and setting the direction for the future.

In the first quarter of the year, the Company launched 9 new SKUs with 133 ongoing R&D projects in its innovation pipeline. 

Market outlook

Vietnam’s pharmaceutical market is expected to maintain sustainable growth, driven by demographic aging and increased government investment in healthcare. Within therapeutic areas, the antibiotic sector, especially next-generation, EU-GMP-certified products with proven efficacy, is expected to see steady growth. Furthermore, evolving lifestyles - including dietary shifts, urbanization, and rising life expectancy - will drive demand for chronic disease treatments such as diabetes, cardiovascular conditions, obesity, and digestive disorders over the next decade. An increasing need for high-tech, high-value medicines, supported by favorable regulatory changes, presents significant opportunities for innovation-focused domestic companies.

A section of the drug packaging production line at Imexpharm's EU-GMP factory. Photo: Imexpharm. 

Commenting on the results, People's Doctor, Pharmacist Tran Thi Dao, General Director of Imexpharm, said, “Imexpharm started 2025 with an exceptional first quarter, achieving net revenue and profit before tax growth of 21% and 23% respectively, with the gross profit margin improving to 40% as cost of goods sold was well-controlled. Our momentum was further amplified by a breakthrough in the Northern market, reflecting the success of targeted investments and localized market activation efforts initiated in 2024. Building on this strong foundation, we are prioritizing high-tech, high-value products - those featuring advanced formulations and enhanced efficacy. As a first mover in these areas, I believe this strategic pivot will yield superior profit margin and further elevate the long-term value of Imexpharm”

Imexpharm will present its strategic outlook and execution roadmap for the remainder of the year - covering market expansion, innovation, and value creation - at its Annual General Meeting of Shareholders on April 25, 2025.