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Jacobson Pharma Announces FY2020 Annual Results

Delivers Solid Performance Amidst Market Challenges Revenue Increases +6.3%   Maintains Full-Year Dividend Per Share of HK4.5 Cents HONG KONG, (Global News)- Jacobson Pharma Corporation Limited ("Jacobson Pharma" or the "Company"; Stock Code: 2633) , a leading company engaged in the research, development, production, marketing and sale of generic drugs and proprietary medicines, today announced its annual results of the Company and its subsidiaries (collectively the "Group") for the year ended 31 March 2020 (the "FY2020" or the "Reporting Period"). Resilient Performance under Distressed Economy Amidst the overwhelming business challenges from the distressed economy in Hong Kong, the Group delivered a solid performance by posting a modest 6.3% year-on-year growth bringing its total revenue to HK$1,571.5 million (FY2019: HK$1,478.1 million (restated)). Gross profit grew by 2.3% to HK$690.0 million (FY2019: HK$674.7 million (restated)), while profit attributable to shareholders of the Company softened by 13.9% to HK$215.6 million (FY2019: HK$250.6 million (restated)) mainly due to the one-off revaluation gains recognised in the previous year, along with the increase in investments and operating expenses in setting up a regional management structure plus one-off professional expenses in preparing for the separation of the Group's consumer health business. The Board recommends payment of a final dividend of HK2.5 cents per share (FY2019: HK3.0 cents per share). Combined with the interim dividend of HK2.0 cents per share, the full-year dividend for FY2020 remains the same as last year at HK4.5 cents per share. The Group's EBITDA (Adjusted) increased by 3.9% to HK$476.2 million, representing its strong capability of generating cash inflows. Strong Market Position in Generics Carrying a strong portfolio of generic drugs and a leadership position in a number of therapeutic categories in Hong Kong, the generic drugs business of the Group registered a positive growth of 3.6% in sales revenue in FY2020, amounting to HK$1,298.7 million (FY2019: HK$1,253.0 million), despite a decline in in-person consultation visits to medical clinics due to Covid-19 pandemic in the last quarter of the financial year. The Group's offerings in certain therapeutic classes demonstrated strong growth, with oral anti-diabetic and anti-ulcerative products registered a robust growth of 42.3% and 34.1% respectively, which was attributed to an increased usage of these essential medicines in chronic disease management. In addition, the cardiovascular products achieved a sales growth of 28.4%, whilst the non-steroidal anti-inflammatory drugs (NSAIDs) also grew by 28.7% due to an expanded market position in the public hospital sector. The Group launched 19 new products during the reporting period, including some difficult-to-make products such as Diltiazem Controlled Release Tablets, Dihydrocodeine Tablets, Perindopril Tablets, Atomoxetine Capsules, Mesalazine Enteric Coated Tablets 500mg and Finasteride Tablets. Besides, over 27 regulatory filings were submitted for new drug registration by the Group. Tapping New Market Potentials with High Value-added Offerings In supplementing its R&D pipeline and portfolio offerings, the Group has signed in-license agreements with a host of multi-national companies for a total of 79 specialised drugs covering several therapeutic classes including cardiovascular, central nervous system, infectious diseases, oncology, gastrointestinal, and ophthalmology, as well as a medical device for RSV (Respiratory Syncytial Virus) and Influenza rapid diagnostics test kit. Among them, 23 items are eligible for tender bidding in the coming years, and 22 items have been launched in Hong Kong. Notable Growth in Proprietary Medicines with Newly Acquired Business Albeit the negative sentiments prevailing in the retail sector, the Group's proprietary medicines business during the reporting period still registered a double-digit growth. With the incorporation of its newly acquired proprietary Chinese medicine business, sales revenue of the Group's proprietary medicine segment posted a 21.2% growth to HK$272.8 million (FY2019: HK$225.1 million). Despite the economic distress, resilient performance has been demonstrated by proprietary brands such as Ho Chai Kung, a well-recognised heritage brand in the analgesics category, which delivered a notable growth of 10.8% over the same period of last year. Shiling Oil, a medicated oil brand of the Group, also presented a growth of 8.4% in overseas markets building on its strong tradition and recognition backed by persistent market development efforts.

Jacobson Pharma Announces FY2020 Annual Results
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