News Jan 05, 2017

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2016 was the second consecutive year of success of Traphaco JSC with the implementation of the sales policy for the system of pharmacies. Together with the over-the-counter (OTC) sales policy, Traphaco kept expanding its production scale with the construction of the modern Vietnam Pharmaceutical Factory. With the overall success from the development of its scale to successful business and production activities, Traphaco has been praised by investors and specialized organizations as one of the fastest growing enterprises in Vietnam.

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Traphaco’s impressive achievement in 2016 was introduced at the conference to review the company’s operation in 2016 and to implement the plan for 2017.

Accordingly, in 2016 the company’s consolidated revenue reached VND2,000 billion, 2% exceeding the yearly target. In particular, revenue from products manufactured by Traphaco and the products exclusively distributed by Traphaco exceeded the yearly plan and increased by 12% compared to 2015. This is the main business sector that brings about more than 70% of revenue and 90% of profits for Traphaco.  Completing this main task in the context of fierce competition and the flood of faked products, the Board of Directors and all employees of Traphaco showed their determination and great effort. Notably, sales from the OTC segment reached VND1,298 billion, up 18%. This result confirmed that the sales policy for pharmacies was a success, through which Traphaco won the trust of clients (according to a survey by IMS, Traphaco ranked second on the OTC market).

Regarding the plan to develop the southern market, in the second half of 2016, thanks to the direct guidance of the General Director, the Southern market prospered (sales up by 12% over the first 6 months  and grew 20% yoy). With this result, the OTC market in the south promises to grow further in 2017.

In 2016, the research and development of new products, development of policies to promote sales of the products of the “Green Health” line was strongly promoted. Thus, revenue from “Green Health” products  grew by 23% over the same period of 2015, reaching VND564 billion (including VAT), 2 percent exceeding the annual goal (VND550 billion). Revenue from imported and consignment products also increased by 8% over the yearly target.

Regarding profit, the consolidated profit reached VND212 billion, 1% more than the set target; up by 17% compared to 2015. Particularly, profit from products made by Traphaco rose by 8% over the set target, up by 13% compared to 2015.

In the current conditions, average profit growth in 2012-2016 of Traphaco (16.3%) is rated to be very high. Traphaco is considered one of the most lucrative listed firms (compared with the listed companies on the stock market as: DHG 8.7%, DMC 14.6%, IMP 6.3%...). In 2016 the average income of Traphaco workers was VND20 million/month, up 11% compared to 2015

In 2016, Traphaco implemented several major projects on schedule. The first phase of the ERP project was completed (process building, software design and software testing). The ERP was applied in the systems on January 1, 2017 and the Phase 2 was launched at the same time, aiming at applying ERP in the entire company.

For the wage and bonus scheme (designing the 3Ps salary system), the project management board was established to develop, select and sign a strategic consulting contract for Traphaco in the period of 2017-2020 was set up.

Under the Green Plan project, Traphaco continued to maintain the medicinal plant growing areas meeting GACP WHO standards, with the five herbs of artichoke, Polyscias fruticosa, Polygonum aviculare L, Convolvulaceae and Ampelopsis cantoniensis and successfully defended the task of the genetic bank "Exploitation and development of genetic resources of Chinese yam and coixseed as material for medicine production." In 2017, Traphaco will be put into operation the Vietnam Pharmacy Factory, which not only meets the GMP-WHO standards but also the higher standards as GMP - EU, GMP PIC/s.

For the IR task: in 2016, comply with Resolution 03/2016 of the shareholders’ meeting, Traphaco increased 40% of its charter capital by issuing bonus shares, its chartered capital grew from VND246 billion to VND345 billion; paid a dividend of 30%/year/charter capital, in cash. The 20% dividend is scheduled to be paid in January 2017 and 10% will be paid in the second quarter of 2017.

With the brand development strategy based on product quality, and the modern distribution system, which spans 63 provinces and cities with more than 23,000 drugstores, in 2016 Traphaco General Director delivered the message of the year "technology Innovation – position enhancement, product development - breakthrough" and launched an emulation campaign. The emulation program attracted 205 programs, with 20 programs awarded. Thereby, Traphaco conducted technological innovation in corporate governance, in production, development of new products, products on the counter, improvement of labor productivity, and reduction of product cost. Traphaco showed its remarkable ability in administration of working capital through the close monitoring of inventory, debt collection, to ensure a strong and safe financial background. Labour productivity increased by 6.5% compared to 2015.

At the conference to review Traphaco’s operation in 2016, Chairwoman Vu Thi Thuan on behalf of the Board of Directors praised the achievement that Traphaco obtained in 2016 and introduced the orientation and targets for 2017.

With the strategy of "path of green health", Traphaco’s target to 2020 is to turn Traphaco into Vietnam's leading green brand, with market capitalization of VND 10,000 billion, total revenue of VND4,000 billion and a total profit of VND500 billion. Traphaco will successfully establish a modern management system based on integrated information platform. At the same time, it will try to become one of the most modern enterprises of the pharmaceutical industry of Vietnam and have the best working environment in Vietnam.

The year 2017 is considered an important hinge in the strategic development of Traphaco, General Director Tran Tuc Ma introduced the message of 2017: the Year of Effectiveness Work - "Efficiency is the goal - Determination is the solution". With that background, Traphaco’s mission in 2017 is to further improve business efficiency and the determination and hard work of officials and employees contributing to improving labor productivity will be the top priority.

In 2016, Traphaco was among the Top 10 pharmaceutical companies of Vietnam; Top 40 of the most valuable brands of Vietnam; Top 50 best listed companies in Vietnam; selected as the National Brand of Vietnam for the third consecutive year (prestigious brand of Vietnam honored by the Government); Top 10 large enterprises winning the National Quality Gold Award; Top 10 Sustainable Businesses in Vietnam; the enterprise well taking care of its workers; and Traphaco Director General honored as one of the 100 outstanding entrepreneurs of Vietnam.