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Company Quarterly Earnings Update – DBD VN – Q4 2024
Summary of Q4/2024 results and outlook of Binh Dinh Pharmaceutical and Medical Equipment JSC (DBD VN)
- Net revenue rose 4.6% y/y to VND1,728bn, with self-developed products contributing 98% of total sales, up 5.4% y/y. Key specialized treatments continued to be the growth drivers: antibiotics (+11.0% y/y), oncology (+11.0% y/y) and dialysis (+20.0% y/y). These groups together accounted for approximately 62.0% of the total revenue. By channel, the hospital sales grew faster at 10.0% y/y, given most of the company’s key groups are sold in hospitals. Retail sales declined 2.8% y/y due to regulatory changes affecting some traditional pharmacies. Gross margin remained stable at 48.2%, supported by a higher mix of self-developed products, offsetting increased depreciation and labor costs. All in all, net profit grew 2.3% y/y to VND275bn.
- Long-term growth drivers: Vietnam’s low healthcare spending base, coupled with rising chronic diseases, aging population, and expanded health insurance coverage, will drive demand for specialized treatments. On the supply side, locally-produced drugs will be preferred in the hospital channel, benefiting from competitive prices and enhanced production quality standards. DBD is strategically expanding its manufacturing capacity to capture these growth opportunities. The oncology tablet production line is expected to commence commercial operations in 2026 under WHO-GMP standards, followed by the aseptic factory in 2027. Additionally, all these new facilities will attempt to get accredited with EU-GMP certification, positioning the company for export potential and enabling sales at higher prices in the domestic market.
- In 2025, the hospital segment is expected to be driven by the company’s three major drug groups. The retail channel is forecast to recover as pharmacies adapt to regulatory changes and DBD expands its presence in modern pharmacy chains. Gross margin is forecast to remain stable, while SG&A expenses will increase slightly faster, reflecting distribution expansion through major pharmacy chains namely Long Chau, An Khang, and Trung Son, as well as oncology pilot production costs.
- For the 2026-2029 period, new facilities will start contribute to its revenue stream. The company has progressively registered its tablet oncology drugs for production and sale from 2026
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