Hyphens Pharma International has reported earnings of $1.9 million for the 1HFY2025 ended June 30, down 66.3% y-o-y.

Revenue for 1HFY2025 declined 10.1% y-o-y to $89.5 million, and profit before tax declined 61.3% y-o-y to $2.9 million.

The healthcare group says that the revenue decrease was due to reduced revenue from the Pharmaceutical and Medical Aesthetics segment and Digital Platform and E-pharmacy segment, which saw a decline in revenue of 18.9% and 5.9% y-o-y respectively.

This was mitigated by the revenue increase in the Proprietary Brands segment, which grew 22.5% y-o-y with the expansion of its portfolio with the addition of Visiopro, Fenosup, and higher demand for Ceradan dermatological products and Ocean Health health supplements.

Overall gross profit rose 1.5% y-o-y due to sales mix optimization.

Distribution costs for 1HFY2025 increased 6.4% y-o-y, administrative expenses rose 6.8% y-o-y, and other losses increased to $4.7 million due to foreign exchange translation losses from a stronger Euro against a weaker Indonesian rupiah and Vietnamese dong.

The above reasons have led to earnings decreasing y-o-y.

During the 1HFY2025, the group completed tranche 2 of its Ardence Pharma acquisition, acquiring an additional 17% shareholding and increasing its total stake in the company to 82%.

The group expects the operating environment to remain challenging — a key challenge is the Asean currency depreciation against the Euro which is its primary supplier payment currency.

Gross margin has been impacted due to currency mismatch as procurement is foreign currency-denominated while revenues are primarily generated in local currencies.