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Company Quarterly Earnings Update – DBD VN – Q1 2025
Summary of Q1/2025 results and outlook of Binh Dinh Pharmaceutical and Medical Equipment JSC (DBD VN)
- Net revenue rose 14.9% y/y to VND441bn. Hospital channel sales (67.1% of total sales) climbed 21.3% y/y. Vietnam’s healthcare sector is undergoing major reforms to enhance hospital service quality, raise patient benefits, and expand insurance payment for chronic diseases (Circular 01/2025, 39/2025, the Medical Examination and Treatment Law). The Ministry of Health continues to prioritize locally produced drugs in hospital procurement to reduce patients’ financial burden. DBD, Vietnam’s leading oncology producer, is well positioned to benefit, driving hospital sales via key products of antibiotics (+21.0% y/y), oncology (+12.0% y/y), dialysis (+37.8% y/y), together contributing an est. 63.0% of total sales. Pharmacy sales rose only 3.7% y/y amid a gradual return of traditional pharmacies post-regulatory suspensions.
- Net profit grew 20.6% y/y to VND81bn. Operating margin rose to 20.0% (from 18.4%), led by an improved gross margin from a shift toward higher-value products in hospitals. These gains, along with lower financial costs, helped offset higher SG&A expenses tied to expanded quality control teams as the company prepares for EU-GMP certification of its oncology and upcoming aseptic facilities.
- The AGM approved a 2024 cash dividend of VND2,000/share.
- For the last 9 months of 2025, net sales are forecast to be led by hospital sales on rising chronic disease treatment and broader oncology insurance. For pharmacy channel, expansion into modern chains requires high discounts, pressuring margins. The company will therefore scale this segment selectively while balancing it with a traditional pharmacy network to optimize profitability. Modest growth is expected as traditional outlets reopen and consumer trust in reputable brands like DBD strengthens under stricter anti-counterfeit enforcement. Online sales are also boosted by DBD’s partnership with Buymed—a B2B pharmaceutical platform spanning Vietnam, Thailand, and Cambodia. Gross margin is set to rise on a higher share of high-value hospital products and lower API costs as Chinese suppliers (~70% of global APIs) shift exports amid the U.S tariffs.
- From 2026-2029, DBD targets to launch the oncology tablet line in 2026, the aseptic factory in 2027; and EU-GMP certification targets for these production lines by 2028, enhancing access to high-tier hospital tenders and export potentials.
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