Hyphens Pharma International Limited reported a net profit of S$6.1 million for the year ended 31 Dec 2025, a 43.6 year-on-year decline largely attributable to foreign-exchange losses and inventory provisions, even as an ongoing portfolio optimisation lifted gross margins to a record 40.7 per cent.
Basic earnings per share fell to 1.89 Singapore cents from 3.30 cents a year earlier. The board has proposed a final dividend of 1.5 Singapore cents a share, exceeding its policy of distributing at least 30 per cent of attributable profit.
Group revenue slipped 9.2 per cent YoY to S$177.4 million. By segment, Pharmaceutical and Medical Aesthetics contributed S$101.3 million, down 18.4 per cent; Proprietary Brands rose 33.1 per cent to S$36.7 million; and Digital Platform and e-Pharmacy declined 9.8 per cent to S$39.4 million. The higher-margin Proprietary Brands lift, coupled with the addition of Visiopro and Fenosup and robust demand for Ceradan dermatological products and Ocean Health supplements, drove gross profit up 3.8 per cent to S$72.2 million.
Headwinds were pronounced in the second half. The company booked S$2.8 million in foreign-exchange losses stemming from a stronger euro against the Indonesian rupiah, Philippine peso and Vietnamese dong. Inventory provisions and write-offs totalled S$3.9 million, mainly linked to excess Sterimar stock built up in FY2024, while a S$0.6 million receivables provision related to a loan for the Vietnam Hypermart platform further weighed on earnings.
Looking ahead, management plans to sharpen focus on its Proprietary Brands, citing upcoming market launches for acne treatment Winlevi and the out-licensing of CE-marked atopic-dermatitis cream Cerapro MED in Europe. In Pharmaceutical and Medical Aesthetics, Hyphens intends to deepen penetration in existing ASEAN markets and assess entry into new territories. Digital initiatives include expanded roll-outs of the POM B2B pharmacy platform in Singapore and Malaysia, continued growth of the Wellaway e-pharmacy, and deployment of AI tools such as the e-MSL virtual medical-sales module.
Executive chairman and chief executive Lim See Wah said the FY2025 results reflected deliberate efforts to “improve the quality of earnings” by emphasising higher-margin products, but noted that currency volatility, elevated costs and shifting regulatory conditions dampened top-line growth. He added that a diversified business model spanning three segments, coupled with disciplined cost and risk management, should help the group navigate near-term challenges while pursuing long-term value creation.
The company closed the year with S$18.7 million in net operating cash inflow and S$26.8 million in cash and equivalents, and it expects to complete the final tranche of the Ardence Pharma acquisition in FY2026 while continuing to scout for bolt-on deals that expand geographic reach or specialty offerings.