SINGAPORE (Aug 13): Hyphens Pharma International reported 2Q19 earnings of $1.6 million, up 1.4% from $1.61 million for the same quarter last year. 

Earnings per share for 2Q19 fell to 0.54 cent from 0.63 cent in 2Q18. 

Group revenue for the quarter fell 6.1% to $29 million from $30.9 million the preceding year,  due primarily to a decline of 14.1% in the specialty pharma principals segment in 2Q19 on the back of higher demand in 2Q18, ahead of products licensing renewal in Vietnam. 

This decline was partially offset by a 7.4% increase in the proprietary brands segment due to higher sales of dermatological products under Ceradan brand, and a 4.6% increase in medical hypermart and digital segment sales. 

Notably, administrative expenses fell 29.3% to $2.3 million from $3.3 million a year ago, due to the absence of one-off IPO expenses, reduced office rental costs and lower R&D expenses. This was partially offset by higher depreciation costs and increased compliance costs and listing fees.

Other income and gains more than doubled to $150,000 on the back of  due mainly to reversal of allowance on trade receivables as a result of collection of long overdue debts which had been previously provided and higher interest income.

Although gross profit for 2Q19 fell 8.6% to $10.1 million due to reduced contribution from the specialty pharma principals segment, gross profit margin for the period remained relatively stable at 35.0%. 

As at end June, cash and cash equivalents stood at $23.6 million. 

In its outlook statement, Hyphens Pharma says it will engage in brand building and marketing activities to consumers in the months ahead, in line with efforts to position the group as a leading consumer healthcare player in addition to being a leader in the specialty pharmaceutical sector. 

Shares in Hyphens Pharma closed flat at 20 cents on Tuesday prior to the release of results.