2009 year with safety financial indicators

Financial statement in 2009 showed that DVD has a "good health" in the top pharmaceutical companies have listed today. In 2009, DVD has raised its charter capital from 89.1 billion to 119 billion VND, net revenue reached 917.1 billion VND, up to 43%. Before-tax profit of the DVD reached 134 billion, growth of 285%, after-tax profit reached 108 billion, growth of 335%. Specifically, the ROA, ROE rate reached 6%, 91%, EPS reached 11.977 VND (295% of growth) and the P / E ratio is 8, this proves that DVD can make good confidence for investors.

Deeply analysis on "health" of the DVD, the experts said that Return on asset (ROA) of DVD reachs 6%, whereas in comparison with the companies in the same sector, DVD is not an enterprise with large total assets. So, DVD is more efficient than others in changing their investment into profit. Moreover, look at interest rates that DVD had to pay for debts shows that ROA of DVD is still good in comparison with cost of borrowing, which means DVDs having a good profit.

Indicator that shareholders of the DVD notice the most is ROE rate (the rate of return on equity). This is the ratio measuring the ability of  profitability on each equity of common stockholders. ROE of DVD reached 91%, it is a high rate for a company, especially in the period of 2009 when the global economy was still "fluctuating" in the crisis. So with a equity spent almost got the same response in return. If compare with other pharmaceutical companies are listed on the stock exchange of Vietnam, the DVD has the highest profit rate today. This DVD has also proved the effective use of capital by shareholders.

Reasons for achivements

About the high growth of DVD in 2009 with the financial safety indicators, Mr. Le Van Dung, Chairman of board of DVD said DVD had “different strategic” with other companies in the same sector, leaded in the technology exchanging, bouht copyright of products from the foreign pharmaceutical firm. Strategy has helped reduce the time for the DVD supply a new product with modest investment but higher profits.

We are focusing on production operations by buying copyright of products from famous international brands to supply for the Vietnam market. This is one business which has created growth and accounted for 80% of revenue, profit of the DVD. This strategy also helps reduce the time to supply a product from 2 years down to 6 months, shorten the time to build successfully a brand from 5 years to 2 years.

2009 year is also the first year that DVD applied the new product structure, removed products with low profit rate and brought more into market new products that DVD is exclusive in the Vietnam market and this is the products with higher profit rate. In the delivery of products, DVD has applied the method of deduct tips in price for dealers to reduce cost of sale from 35% / revenue to about 7%/ revenue. This has generated a big profit in the past year for DVD. In 2009 DVD also had policies to reduce the cost of management and increase profit rate ended year by limiting the development of branches and sales system in areas where consumption is slow, low ...

Expectation in 2010

Mr. Le Van Dung said that the highlights of the DVD in 2010 is producting flu drugs Fludon, including of three products "flu Fludon, H1 Fludon and herbal Fludon". Two of 3 products has been licensed and prepared to sell into the market. this product could bring hundreds of billions of revenue with good profit rate in comparison with existing products of DVD.

Keeping "stylist" of the pioneers in buying copyrights, technology exchanging and exploring the market, DVD expected in 2010 introduced to the market 40 new pharmacies and functional foods. Many comments concerned that introducing 40 new products at the same time into cost DVD much expense to advertise, promote these products with the market.

Because most of products are bought the copyrights and technology from U.S. and European companies such as "Muller Germany; Norhfort USA; EU France; Yvery France ...), there are so many advantages for DVD saving costs to build a brand name.

In addition, in 2010, DVD will issue more 7.09 million common shares to existing shareholders and staffs of the company to increase its charter capital from 119.1 billion VND to 190 billion VND. Thus, target of DVD in 2010 with 1180 billions of revenue and reaching 143 billions of profits has solid backgrounds for expectation.

Ly Cong

Box: Table:  “DVD’s financial indicators” in 2009 (according to reference information in the Financial statement of DVD in 2009)