Imexpharm’s EBITDA margin rises to 22.3 per cent driven by cost management and growth

Imexpharm Corporation has announced its third quarter results for the three months ending September 30. Despite a transitional quarter for the industry, Imexpharm sustained positive on-year growth across key indicators, supported by disciplined cost management and resilient business development.

In the third quarter, Imexpharm recorded gross revenue growth of 10 per cent on-year and net revenue growth of 5 per cent on-year, against a backdrop of structural changes in the operating environment. This performance reflects the continued resilience of the company's growth engines across both the over-the-counter (OTC) and prescription-drug (ETC) channels.

Cost of goods sold rose modestly by 3 per cent on-year, well below the pace of revenue growth. This was achieved through efficient production planning, higher factory utilisation, and proactive cost optimisation initiatives across four factory clusters. In the third quarter, the company brought its final lyophilised powder line into operation, further ramping up production capacity at its newest EU-GMP IMP4 facility.

As a result, gross profit expanded by 9 per cent on-year, and the gross profit margin remained stable at 40 per cent.

Operating expenses continued to be tightly managed. Selling, general, and administrative expenses (SG&A) increased by only 3 per cent on-year, demonstrating effective expense management amid ongoing investments in market expansion and digital transformation.

Supported by strong cost control and steady operational efficiency, profit before tax (PBT) increased by 11 per cent on-year, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose by 12 per cent on-year, highlighting the company's continued focus on profitability and productivity improvements.

On an on-quarter basis, performance moderated following an exceptionally strong Q2. This was largely due to two temporary factors: customer stockpiling in Q2 ahead of the price adjustment from July, and regulatory and infrastructure changes effective from July such as taxation on household businesses, provincial consolidation and the implementation of the two tier government system.

After a soft August, sales rebounded sharply in September, with net revenue up 25 per cent from a month ago, with PBT up 101 per cent, and EBITDA up 48 per cent, underscoring the resilience of underlying demand.

For the first nine months of 2025, Imexpharm achieved solid growth across all key indicators.

Gross revenue climbed to VND2.118 trillion ($80.5 million), representing 21 per cent on-year growth, while net revenue reached VND1.8 trillion ($56.9 million), up 16 per cent on-year. The performance was mainly driven by robust expansion across both the OTC and ETC channels, which grew 19 per cent and 21 per cent on-year, respectively.

Gross profit increased 21 per cent, PBT increased 23 per cent, and EBITDA expanded 18 per cent on-year.

The company's gross profit margin stood at 40 per cent and the EBITDA margin improved to 22.3 per cent, reflecting a healthy balance between growth and efficiency.

As of end-September, Imexpharm had fulfilled 68 per cent of its full-year net revenue target and 63 per cent of its profit-before-tax target, maintaining good progress towards its annual objectives.

As per a board resolution dated September 23, the company has put forward a plan for shareholder approval via written ballot to issue over 1.55 million ESOP shares at a price of VND5,000 ($0.19) per share. These shares will be subject to a one-year transfer restriction following the completion of the offering. As of September 30, IMP's share price had increased by 14 per cent since the start of the year.

The shift from a traditional cash-based incentive to the ESOP share mechanism serves to conserve cash flow while establishing a long-term alignment between the interests of our employees and the company's value creation. Upon shareholder approval, this programme will become a critical enabler of Imexpharm's human capital strategy, further cementing investor confidence in the company's disciplined management and commitment to sustainable growth.

On the professional front, Imexpharm continues its flagship ImexForum series, a branded scientific event launched in 2019 and widely recognised within the medical community. In Q3, the forum was held for the first time in Hanoi, attracting nearly 300 healthcare professionals and marking a strategic step in strengthening Imexpharm's brand presence and engagement in northern Vietnam.

Imexpharm's commitment to operational efficiency was demonstrated by the acceleration of digital transformation in human resource management. The iHRP system integration project, launched on July 22, in partnership with FPT, is poised to digitise nearly 90 per cent of human resources workflows. This comprehensive system integrates all functions from recruitment and management to performance evaluation and talent development, significantly enhancing productivity, reducing operating expenses, and optimising overall human resource governance.

In the first nine months of the year, the company launched 20 new SKUs, ahead of the annual plan of 16, while maintaining strong innovation momentum with 144 research and development projects currently under development.

ongoing digital transformation, particularly the integration of AI, and the shift towards speciality and biologic medicines are reshaping R&D models worldwide. Despite these complexities, the global focus on high-quality drugs, including first generics and biosimilars, continues to strengthen as a key strategy to manage rising healthcare costs.

Vietnam's pharmaceutical industry is entering a new phase of growth, strongly supported by recent government healthcare initiatives, laying out a bold roadmap for the country to become more self-reliant in medicine production while accelerating the digital transformation of the system. Alongside this, administrative procedures under the Ministry of Health are being simplified to make doing business in the sector more efficient and transparent.

New regulations, such as taxation on household businesses and mandatory e-prescriptions, have introduced short-term hurdles for market participants. However, these changes are also creating the foundation for a healthier and more sustainable pharmaceutical market.

In this evolving environment, Imexpharm's leadership in EU-GMP production, together with its commitment to digital transformation and innovation, places the company in a strong position to contribute meaningfully to the development of Vietnam's healthcare system.

"As the market transforms with both challenges and opportunities, Imexpharm's strong focus on quality and agility has enabled us to continue achieving success. We are constantly strengthening our competitiveness through continuous product innovation, expansion into new opportunities, operational efficiency, and a strong commitment to long-term growth," shared People's Doctor, Pharmacist Tran Thi Dao, general director of Imexpharm.

Imexpharm is reigniting the development of high-tech, high-value pharmaceuticals, establishing a solid foundation for sustainable growth both domestically and internationally.

Imexpharm reported strong first half results on July 18, with net revenue up 22 per cent on-year, reaching nearly half of its annual target.

Vietnam's pharmaceutical sector is advancing through a combination of scientific innovation, regulatory responsibility, and efforts to build a sustainable healthcare system.