Hyphens Pharma to pay out FY2019 dividend on June 8; Q1 net profit up by 48.6%

CATALIST-LISTED healthcare-products group Hyphens Pharma International will reclassify its proposed final dividend for FY2019 as an interim dividend, as its annual general meeting, where shareholders would have voted on the payout, was delayed by the coronavirus pandemic.

The books will now close on May 26, and shareholders can expect their payout of S$0.01 a share on June 8, Hyphens Pharma's board said in a bourse filing on Monday.

Meanwhile, first-quarter net profit surged by 48.6 per cent year on year to S$2.12 million for the three months to March 31, on the back of a broad-based increase in sales. Revenue grew by 16.4 per cent to S$31.4 million, according to unaudited results also released on Monday.

Earnings per share rose to 0.71 Singapore cent, from 0.48 Singapore cent before. Net asset value was 15.36 Singapore cents a share, against 14.67 Singapore cents as at Dec 31, 2019.

Chairman and chief executive Lim See Wah added in a statement: "We are seeing good growth in our proprietary brands segment and our virtual medical hypermart."

Despite the ongoing coronavirus pandemic, Hyphens Pharma said it is not facing difficulties with its material contractual obligations or its ability to operate as a going concern.

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It even plans to pick up the pace for its e-commerce investment for consumer healthcare brands, and enhance its digital engagement with medical professionals, to tap tele-medicine and other digital trends as the world moves away from face-to-face contact.

Hyphens Pharma reaffirmed a pledge to pay out at least 30 per cent of net profit as dividends, although none was recommended for the quarter - unchanged from the year prior - as the board said it would review the payout after the financial year "on the grounds of prudence".

Shares closed flat at S$0.25 on Monday, before the results were released.