Lam Dong Pharmaceutical profit up despite receivables challenge

Lam Dong Pharmaceutical Joint Stock Company (LDP) reported a 22.63% increase in profit after tax for the first six months of 2025, reaching VND 2,239,419,564 in both separate and consolidated financial statements. This is up from VND 1,826,219,716 in the same period last year. Growth was primarily attributed to a VND 17.88 bn (19.22%) increase in total revenue from sales of goods and services, despite a corresponding rise in operating costs, including expenses for new branch openings, sales investments, and product promotion.

However, the company faces a qualified audit opinion due to a substantial receivable from Bao Thu Industrial Development and Investment Joint Stock Company. As of June 30, 2025, the Group has a VND 50,050,000,000 receivable related to a consulting and development contract for the Nguyen Kim Da Lat Commercial Center Project and a land use rights lease contract. Despite favorable court judgments ordering Bao Thu Company to repay VND 32,500,000,000, the Group lacks sufficient grounds to assess the recoverability of this balance and is currently pursuing enforcement.

In parallel with its financial performance, LDP successfully offered 635,000 common shares under its Employee Stock Ownership Plan to boost working capital and is in the process of registering this capital increase. The company also disclosed its normal operating cycle is within 12 months, with its main business activities including the production and trading of oriental pharmaceuticals, medicines, pharmaceutical materials, and medical equipment.