POM TRAPHACO

1, file:///C:/Users/AD/Downloads/BVSC+-+2015+-+TRA+Analysis+Report.pdf

2013 10,000 customers Whole sale customer Retail Customer 20% 80%

2014 18,000 customers Whole sale customer Retail Customer

>> Restructuring the distribution system

TRA’s distribution system is currently regarded as the second largest system in the pharmaceutical
industry, only after DHG, with 13 branches, 47 drug stores and 18,000 customers located widespread in
63 provinces and cities.

TRA intends to expand its customer portfolio to reach 20,000 customers and deploy the selling software
(DMS) in 2015. Then, TRA will focus on exploiting this customer portfolio instead of finding a new one
because it thinks there are only about 20,000 customers on the market having suitable revenue for its
exploitation. This is also the main trading strategy of TRA in the coming years

TRA’s new selling policy will focus on retail sales and reduce wholesale proportion so as to control its
product supply and the retail price of TRA’s products on the market. TRA had experience such a difficult
period in Q1/2014 when only reached VND173 billion in revenue, only equal to 67% of Q1/2013’s
revenue (VND258 billion)

2, http://www.traphaco.com.vn/en/news/news/1/366-traphaco-reviews-the-year-2018-and-initialize-
the-plan-of-2019.html

- Considered as one of the competitive strengths of Traphaco, the distribution system is always
expanded and consolidated. The Company has invested in establishing 04 branches, bringing
the total to 28 branches with 27,500 drugstores nationwide. Establishing a hospital sales
division to promote hospital sales channel according to Company's Strategy. Assigning work
associated with the task and evaluating the KPIs associated with the benefits of sale
representatives.

- In 2018, the Company completed a huge workload, achieved important results, was
recognized by the State and society, firmly prepared for future development steps.
Traphaco will realize the targets of 2019, to gradually achieve the objectives under the
Traphaco Sustainable Development Strategy for the period of 2017-2020 with the
following main criteria:

Consolidated revenue (without VAT) VND 2,160 billion,

Of which: Manufactured products VND 1,800 billion,

Exclusively imported goods: VND 100 billion,

Revenue from subsidiaries VND 260 billion,

-Consolidated profit after tax VND 228 billion,

-Profit after tax of the parent company VND 180 billion,

In 2019, the CEO Tran Tuc Ma issues the message of the year: "Professional
governance - Cost optimization - Value synergy - Targets Actualization". The
background and experience accumulated in 2018 will be the motivation for Traphaco to
implement in 2019 with a step forward to make a breakthrough. (5)

- Award and prizes in 2018

• Top 10 Vietnam Golden Stars in 2018

• 2018 National Brand

• Top 10 Sustainable Development Businesses in 2018 - Vietnam Sustainable

Development Enterprises Council.

• The most prestigious company in Vietnam Pharmaceutical industry 2017 voted by

VietNam Report

• Top 50 best listed companies in Vietnam by Forbes.

• Enterprise for Employee in 2018.

• Top 50 businesses with the best working environment in Vietnam.

• Thang Long Cup (praising the typical enterprise of Hanoi capital in 2018) - Hanoi city
Authority - Hanoi People's Council- Hanoi People's Committee - the Vietnam Fatherland
Front Committee of Hanoi.

• Emulation flag of Hanoi City.>> (5)

3, http://www.traphaco.com.vn/en/news/press-with-traphaco/14/297-traphaco---s-persistence-
of-.html

- After 45 (many) years of establishment and development, Traphaco has presented

high ethical standards and revolutionary vision in research and production, step by step
realizing "the green path for healthiness", and becoming one of the leading medicine
manufacturers in Vietnam. >>(5)
- 1 Distribution
subsidiaries
- 28 Branch
representatives
- 27000 Retail
clients
 - 64 Provinces across
the country
4, https://www.vir.com.vn/traphaco-just-the-right-medicine-for-the-market-19180.html

>> Chứng minh rằng Traphaco đang từng bước phát triển qua từng năm và cuois cùng đã đạt được
thành công nhất định.

-Traphaco has grown into the second largest pharmaceutical firm in Vietnam with a sharp
network expansion and core business strategy.
- According to its annual report released in January, Traphaco achieved VND116
billion ($5.5 million) in net profit, representing 31 per cent year-on-year growth.
During 2012, Traphaco opened four branches and acquired two provincial
distributors, bringing its network of distribution branches and subsidiaries to 18
nationwide.
- This represents outstanding growth as Traphaco had only two branches in 2009.
The net profit growth in the last three years was particularly impressive at almost 32
per cent per annum. The revenue and net profit annual growth rates were 21 and 25
per cent, respectively over the last five years.
- Since then it has outperformed its peers in terms of revenue and net profit growth
to become the second largest manufacturer in Vietnam, from the fifth in 2007. Last
year, was the second consecutive year that Traphaco boasted the highest net profit
growth rate among listed pharmaceutical companies.
- Traphaco already has a strong foundation for future sustainable growth, with a
large farming area of herbal plants, an award winning R&D team, two GMP-WHO
certified manufacturing facilities, a nationally-recognised brand and a nationwide
distribution network of 18 branches.
- However, there is other factor behind the success of Traphaco. That is the company
has two competent leaders, chairwoman Vu Thi Thuan and director Tran Tuc Ma.
“Thuan and Ma led the creation of a clear vision for Traphaco and a clear series of
annual milestones for achieving that vision. This has contributed to a more rapid rate
of growth than other companies that don’t have such a clear vision or business plan,”
said Freund.
-
5, https://www.dnb.com/business-directory/company-
profiles.traphaco_joint_stock_company.c0fce673c5d39c17a8785b40b83c6ee1.html
- ANNUAL REVENUE 2019 $73.55 millionUSD
-
6, https://english.vietnamnet.vn/fms/business/219804/vn-s-top-pharmaceutical-firm-traphaco-fares-
poorly-in-optimising-profit-through-financial-tools.html
- One of the major pharmaceutical firms in the country, Traphaco JSC seems to have forgotten
the strength of financial vehicles to realise its profit optimisation target.
-
-
7, https://www.brandsvietnam.com/10486-Traphaco-Xay-thuong-hieu-tu-chat-luong
- Về lâu dài,đến năm 2020 Traphaco đặt mục tiêu trở thành DN số 1 ngành dược
Việt Nam về doanh thu, lợi nhuận và vốn hóa thị trường
- Minh chứng, năm 2015, doanh thu củaTraphaco đạt 1.974 tỉ đồng, tăng 20% và
lợi nhuận sau thuế trên 180 tỉ đồng, tăng trên 23% so với năm 2014, dẫn đầu
ngành dược về tốc độ tăng trưởng doanh thu và lợi nhuận sau thuế
-
8, https://www.brandsvietnam.com/15036-Giai-ma-ke-hoach-tang-truong-hai-con-so-cua-Traphaco
- Số liệu kinh doanh của Traphaco cho thấy, năm 2017, doanh thu của Công ty
đạt 1.870 tỷ đồng, bằng 94% so với kế hoạch năm và tăng 11% so với cùng kỳ
năm 2016.
- Nhóm sản phẩm đông dược chủ lực với những nhãn hàng đã khẳng định được
uy tín, hiệu quả điều trị như Boganic, Cebraton, Tottri, Hoạt huyết dưỡng nào…
tiếp tục được củng cố để gia tăng độ phủ và sức mua. Dư địa cho nhóm sản
phẩm này tăng trưởng không hề thấp, đơn cử năm 2017, doanh thu Tottri tăng
trưởng tới 48%. ( behavior >> người Việt dùng hàng Việt, Người lớn tuổi thì tin
tưởng hơn vào các sản phẩm liên quan đến truyền thống)
- Đặc biệt, nhóm sản phẩm mới, sức khỏe xanh (thực phẩm chức năng) của
Traphaco có rất nhiều cơ hội khi năm 2017 vượt 20% doanh thu so với kế
hoạch, nhóm khách tiêu dùng sản phẩm sức khỏe xanh trên 30% chiếm 92% số
lượng khách hàng.
- Át chủ bài giúp Traphaco đạt được mục tiêu tăng trưởng cao còn nằm ở mảng
tân dược với nhà máy Traphaco Hưng Yên đã đi vào hoạt động từ tháng
11/2017
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