Taisho-controlled pharma giant DHG posts 9.4% net profit surge in 2025

DHG Pharmaceutical JSC (HoSE: DHG), one of the leading pharmaceutical firms in Vietnam, reported audited net profit of VND852 billion ($32.35 million) in 2025, down 5% from its pre-audit figure, as additional tax obligations and provisions weighed on earnings.

After audit adjustments, net profit still rose 9.4% compared to 2024’s VND779 billion ($29.58 million), reflecting steady demand in Vietnam’s pharmaceutical market despite rising regulatory and compliance costs.

According to the audited financial statements, the company recorded net revenue of VND5.27 trillion ($199.97 million), unchanged from earlier disclosures, while gross profit reached VND2.51 trillion ($95.14 million), down slightly by VND6 billion ($227,800).

Despite the downward adjustment, the firm exceeded the year’s profit target by 5%, underscoring resilient operating performance.

The audit highlighted the impact of the parliament’s Resolution 107/2023/QH15, which introduces a 15% global minimum corporate tax rate for large multinational-backed firms.

With Japan’s Taisho Pharmaceutical holding a controlling 51.01% stake, DHG had previously benefited from preferential tax rates below the 15% threshold. This triggered additional tax liabilities under the new mechanism.

As a result, the company booked VND33.01 billion ($1.25 million) in additional corporate tax for 2025, VND21.98 billion ($834,500) in back payments for 2024, and VND1.4 billion ($53,150) paid on behalf of Taisho Vietnam.

Beyond tax adjustments, DHG increased provisions related to environmental obligations. The company set aside an additional VND38.1 billion ($1.45 million) for site restoration and cleanup, bringing total long-term provisions for this purpose to VND81.46 billion ($3.09 million) by end-2025. It also recorded VND4 billion ($151,870) in short-term expenses tied to recycling and packaging treatment.

Separately, total revenue from sales and services surpassed VND6 trillion ($222.8 million) for the first time, reaching VND6.14 trillion ($233 million), up more than 7% year-on-year.

DHG shares ended up 0.3% to VND100,100 ($3.8) each on Tuesday.

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