Pharmaceutical Profits Dip: Binh Dinh Pharma’s Net Income Falls 20% Amid Rising Capital Costs and R&D Investments

Bidiphar (HOSE: DBD) has released its consolidated Q3 2025 financial report. Despite significant cost-cutting measures, the company experienced a decline in profits compared to the same period last year, primarily due to rising production costs and losses recorded from its joint ventures and associates.

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DBD’s Q3 2025 Business Targets

In Q3, DBD’s net revenue reached VND 440 billion, a slight increase year-over-year. However, the cost of goods sold surged by 16% to over VND 252 billion, causing gross profit to decline by 13% to VND 187 billion.

Financial activities were a highlight, generating VND 9.1 billion in financial revenue, 2.7 times higher than the same period last year, while financial expenses decreased by 14% to VND 4.1 billion. Selling expenses unexpectedly dropped by 20% to VND 88 billion. Nevertheless, the company recorded a loss of VND 8.4 billion from its associate company (compared to a profit of nearly VND 7 billion in the same period last year). Administrative expenses rose by 12% to VND 24 billion.

After deducting all expenses, DBD’s post-tax profit was VND 60 billion, a 20% decrease year-over-year.

In its explanatory statement, DBD attributed the decline in Q3 profit primarily to the allocation of VND 15 billion to the Science and Technology Fund for R&D of new products. Additionally, expenses for sales and marketing activities were boosted during the period.

For the first nine months of the year, DBD still achieved an 8% growth in profit, reaching VND 231 billion; revenue totaled nearly VND 1.4 trillion, up by 8%. The company has fulfilled 68% of its annual revenue target and 82% of its pre-tax profit plan. DBD plans to continue strengthening marketing and R&D efforts to gain long-term advantages.

As of September 30, DBD’s total assets amounted to over VND 2.43 trillion, a 7% increase from the beginning of the year, with more than VND 1.4 trillion in current assets, slightly down. Cash and deposits reached VND 532 billion, up by 21%. Inventory decreased by 24% to VND 379 billion.

The most significant change was in long-term assets, where construction in progress rose by 89% to VND 442 billion. This item primarily includes investments in the “High-Tech Pharmaceutical Production Plant (Nhon Hoi),” totaling VND 407 billion.

Regarding capital sources, total liabilities increased by 20% to VND 722 billion, with VND 531 billion in short-term debt (up by 15%). Short-term loans surged to VND 98 billion, 2.7 times higher than the beginning of the year; long-term debt nearly tripled to VND 80 billion.

Chau An

– 09:30 31/10/2025

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