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DHG Pharmaceutical (DHG VN) – Q1 2026 – Net Profit Rises 18.6% on Margin Expansion and Strong Consumer Healthcare Demand
Summary of Q1 2026 results and outlook of DHG Pharmaceutical JSC (DHG VN)
- Net revenue reached VND 1,198bn (+0.3% y/y), with owned products (91.0% of revenue) remaining flat (+0.1% y/y), mainly reflecting a change in accounting treatment whereby promotional items are no longer recognized as revenue. On a like-for-like basis, underlying revenue grew by 3.4% y/y. By distribution channel, both pharmacy sales and hospital sales grew steadily at a similar pace, with modern trade maintaining double-digit growth. Strong consumer healthcare and antibiotic franchises continue to drive the bulk of sales, while ongoing product launches in respiratory care, everyday symptom relief, and chronic disease treatment, alongside progress in technology transfer with Taisho, add to growth momentum.
- Net profit rose 18.6% y/y to VND 315bn, supported by gross profit margin improvement, lower SG&A expenses, and higher net financial income. Gross profit margin (+2.6 ppt y/y) benefited from a change in revenue mix, while SG&A expenses declined 4.0% y/y due to timing-related marketing cost deferrals in Q1. Higher deposit rates and full repayment of debt bolster net financial income (+ 54.9%y/y).
- AGM updates: Approved cash dividends of VND 10,000/share (2025) and VND 7,000/share plan (2026). Strategically, DHG focuses on optimizing existing capacity while strengthening its core consumer healthcare portfolio, particularly dietary supplements and new products supported by technology transfer from Taisho.
- Structural demand for healthcare in Vietnam remains robust, driven by rising health awareness, growing preventive care spending, and increasing consumer preference for trusted healthcare products, supporting DHG’s focus on consumer healthcare. Meanwhile, the ongoing formalization of the pharmacy channel through tighter prescription control, tax standardization, and nationwide e-prescriptions from 2026 is creating a more transparent and organized retail environment. In the hospital channel, higher priority for high-standard local producers is driving domestic manufacturers to upgrade production capabilities, with 37 of 307 GMP facilities now meeting EU/Japan-GMP standards, up 42.3% y/y.
- For the remaining 9M of 2026, revenue is projected at VND 4,340bn (+6.6% y/y), leading full-year revenue to reach VND 5,538bn (+5.1% y/y). Growth is underpinned by DHG’s, strong brand equity, broad distribution footprint and high production standard with above 80% of its products are now produced under EU/Japan-GMP standards, alongside continued product pipeline expansion with Taisho’s technology transfer. Capacity utilization, a shift toward higher-margin products, and stable input costs are expected to improve last 9M’s gross margin (+1.3 ppt y/y), lifting full-year margin to 49.1% (+1.6 ppt y/y). Overall, we forecast 2026 net income to VND 962bn (+12.9% y/y), bolstered by improved efficiency and higher net financial income.
Interested in DHG? Click here to read more of our previous analysis on DHG’s quarterly earnings.
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