Traphaco anticipates record earnings in 2024

DNHN - Traphaco’s Board of Directors expects gross profit in 2024 to reach VND303 billion, up 6% year-on-year.

According to the documents submitted to the upcoming Annual General Meeting of Shareholders, the Board of Directors of Traphaco Joint Stock Company (stock code: TRA) has set a target of VND2,485 billion in net revenue this year, up 7% year-on-year. Of this, revenue from the OTC channel (over-the-counter drugs) is expected to contribute VND1,975 billion and from the ETC channel (hospital bidding channel) VND245 billion. The remaining revenue will come from the revenue of subsidiaries and financial activities.

Traphaco’s Board of Directors has set a target of VND303 billion in gross profit this year, up 6% year-on-year. This would mark the highest gross profit since the company was listed on the stock exchange, i.e. in the past 16 years.

To achieve this target, Traphaco’s management has identified the core task this year as maintaining its market leadership in the field of oriental medicine and expanding products outside the field of oriental medicine. For the OTC channel, the company plans to increase the number of SKUs (individual products) at each pharmacy, boost online sales and expand the reach of its core products. For the ETC channel, Traphaco has announced plans to develop the prescription segment in clinics, invest in specialised personnel for this channel and increase marketing activities through conferences and product introduction workshops for healthcare professionals.

However, in 2023, Traphaco failed to achieve its revenue target of VND2,600 billion, reaching only 90% of the total, equivalent to VND2,330 billion. This was mainly due to an 8% year-on-year decrease in revenue from the OTC channel. This result broke a four-year streak of revenue growth. The company’s gross profit in 2023 reached VND285 billion, only 87.4% of the plan and down 3% year-on-year.

Traphaco’s management explained that the OTC market is facing many difficulties, in addition to a large decrease in revenue due to customers participating in the loyalty programme. They also acknowledged that the sales programmes had not been received as well as possible by customers regarding the value of the product and the company.

P.V