Traphaco reviews the year 2017 and initialize the Plan of 2018
2017 is the first year for Traphaco to announce & implement the Sustainable Development Strategy in 2017-2020. The Strategy is a comprehensive guideline throughout the operation of the Company.
2017 is also a year of pressure and challenges, however Traphaco has fulfilled the targets set by the General Meeting of Shareholders: Financial ratios (turnover, profit, proceeds); Vietnam pharmaceutical factory’s successful registration of GMP - WHO standard and its effective, profitable operation. Particularly, there are 38 products granted permission of production by the Drug Administration, which is a truly spectacular achievement. Better corporate governance on the DMS-ERP-integrated platform, other software is planned to integrate with ERP soon, successful deployment of e-invoices. These impressive results are highly appreciated at the Summit Meeting to review 2017 performance and initialize 2018 plan.
In 2017, Traphaco's consolidated revenue was VND1,923 billion, achieving 96% of the plan. In particular, the revenue from manufactured goods and exclusive distribution reached 100% of the plan, increased 11% compared with 2016. This is the main segment, bringing annual revenue and profit to the Company. This main task completed in the context of fierce competition and imitation of key products is thanks to the determination of the Leaders and every employees of Traphaco.
Regarding profit targets: Profit after tax of the parent company is estimated at VND 225 billion, achieving 101% of the plan, increasing 8% compared to 2016, maintaining the positive growth rate in the context of decreasing revenue due to stringent accounting policy and unfavorable market conditions. In 2017, the average income of employees reached VND21.3 million/month, increased 6.2% from 2016, fulfilling the target set by the Board of Directors (5% to 10%).
2017 is also the first year of Traphaco to announce and implement the Sustainable Development Strategy in 2017-2020. Shortly after the Strategy was approved, on March 31, 2017, the CEO established a Strategic Implementation Board with 11 members. From May 4th 2017 to Aug 3rd 2017, the Company held 9 training courses on Traphaco's Sustainable Development Strategy, with 956 series of participants. Traphaco has also cooperated with Anphabe to conduct "the survey on the happiness of Traphaco’s employess". The results are really encouraging: Employees in Traphaco have close connection and long-termed commitments to the company. Their attitude and satisfaction is among the excellent groups in Vietnam market. Overall, the happiness level of Traphaco's employees is excellent (82.7), more than the average of the sector (64.8) and the nationwide (63.1). Also, according to the Anphabe survey, 91.8% of Traphaco's employees believe in the company's strategy.
In addition, Traphaco continues to launch many important projects as scheduled. The 3Ps salary policy has been introduced since Aug 12, 2016 and has been approved by the Board of Directors and officially takes effect from Jan 1st, 2018. One of the most remarkable results was the completion of the Vietnam Pharmaceutical Factory Project on schedule, within the total investment cap required by the General Meeting of Shareholders. This is a significant project, demanding great resources, and playing a strategically important role to the Company’s future. Within less than 2 years (from the second half of 2015 to the end of the third quarter - 2017), with much sweat and tears, Traphaco turned nearly 50,000 m2 of swampy agricultural land, into a modern plant with 4 large lines and a series of auxiliary systems under international standards. Not only that, only in a short time, Vietnam Pharmaceutical Factory has been granted Certificate of GMP-WHO standards and Qualification of Production by Drug Administration. After all these efforts, Vietnam Pharmaceutical Factory officially entered the commercial operation phase. The first batch of products has been shipped to customers across the country with the joy and excitement of the whole company.
Regarding the development of the distribution channel system: considered one of the competitive strengths of Traphaco; the distribution system are always expanded and consolidated. In 2017, Traphaco established 4 more branches (Thai Nguyen, Yen Bai, Thua Thien Hue, Kien Giang) bringing the total branches nationwide to 24. The number of client in 2017 is more than 26,000 retail pharmacies, an increase of 3,000 clients compared to 2016. Aiming to develop the southern market, with considerable efforts, Traphaco has gained quite good results. Total revenue increased 7%, of which OTC revenue increased 13% compared to 2016.
In 2017, policies to promote sales of Green Health products are enhanced to mobilize business resources. The result of the Green Health business is VND 758 billion (VAT included), reaching 126% of the plan for 2017 (600 billion VND); growth of 23% compared to 2016. The revenue from import products was 106% of the plan.
In the past years, the Company has also achieved initial success in preventing counterfeit trademark of Traphaco. With great endeavor of the Company, competent authorities have issued the decision to withdraw, as well as retrieved licenses for the circulation of a number of counterfeit and imitation brands of Boganic Traphaco.
With a branding strategy based on product quality, along with a modern distribution system (present in 63 provinces and over 26,000 retail pharmacies), in 2017, the CEO chose the message of the year "Work Effectiveness" and launch the emulation program. There were 311 programs participating, of which 257 were presented and 20 were awarded. As a result, the Company has increased the value chain of Traphaco, maintaining the brand name as the most prestigious pharmaceutical company in Vietnam. Exploiting the extensive network of distribution, increasing SKUs to increase OTC revenue compared to 2016. Increasing labor productivity, reducing product cost, ensuring product quality, revenue growth & profitability.
At the conference summing up the business in 2017, the Chairwoman of the Board - Md. Vu Thi Thuan on behalf of the Board praised the proud results of 2017 and announce the targets for 2018. Specifically: Consolidated revenue of VND 2,400 billion; Consolidated after-tax profit of VND 300 billion; Market capitalization of VND 6,000 billion; Breakthrough in the Southern market: revenue of 500 billion VND; New product development: 8 products, New branches: 4; Labor productivity increases: at least 5% compared to 2017; Employees’ income increase: at least 5% up compared to 2017
With the strategy "Green Health Way", the target to 2020: Traphaco is the No. 1 pharmaceutical company in Vietnam in terms growth of revenue & profit & market capitalization and becoming the leading Green Trademark in Vietnam; In particular, the market capitalization reaches VND 10,000 billion, total revenue reaches VND 4,000 billion and total profit reaches VND 500 billion. Traphaco has the technologically advanced management system based on information-integrated platform. At the same time, it will be one of the enterprises with the highest standards in the pharmaceutical industry in Vietnam; Traphaco people are happy, satisfied with life and work, Traphaco’s working environment belongs to the best group in Vietnam.
2017 had ended, 2018 is an important year in Traphaco's development strategy. CEO Tran Tuc Ma has put forward the message of 2018 - the Year of Realization of the Strategic Goals with the communication message as "Strengthening Control - Realizing Targets." With that foundation, the implementation of the strategy is a mandatory, vital task of Traphaco amidst a new situation, requiring the firmness of the Leaders, the unity and determination of management levels and each employee. All activities of the Company, divisions and individuals are controlled and consistent with the strategic goals of Traphaco. The overall goals of 2017-2020 Sustainable Development Strategy are the guideline for all actions.
Major honors & awards achieved in 2017.