The Hau Giang Pharmaceutical Co (DHG) posted a net profit of VND142 billion (US$6.7 million) in the third quarter, down 32 per cent year-on-year. The company has explained that the sale of its famous medicinal Eugica trademark to Thailand-based Mega Life for VND122 billion ($5.8 million) was the main reason that pushed up third-quarter net profits in 2013.
For the nine months ending in September, DHG earned net profits of VND413 billion ($19.6 million), a year-on-year fall of 8.2 per cent.
Its third quarter net sales of VND908 billion ($43 million) marked a 12.7 per cent increase over the same period last year, but costs soared from VND180 billion ($8.5 million) to VND249 billion ($11.8 million), mainly due to a strong increase in promotion expenses including discounts and other forms of sales support.
In previous years, DHG had recorded the value of promotion as part of sales and cost of goods sold. However, the company's new policy does not allow this practice and the new figures better reflect its real net earnings.
The ratio of earning per share (EPS), which measures the net income earned per common stock, remained high at VND4,740 per share in the first nine months of this year.
The company did not have any long-term debts as of September.
Hau Giang Pharmaceutical is the biggest drug company on the stock market with a market capitalisation of VND8.2 trillion ($388.6 million).
DHG general director Pham Thi Viet Nga has been listed as *** of the top five EY entrepreneurs of the year, the prestigious international prize awarded by auditing firm Ernst & Young since 1986.
DHG share price is being traded around VND91,000 ($4.31) per share.