Australian pharmaceutical company Star Combo Pharma has reported a year-on-year decline in third-quarter sales – from $6.1 million to $5 million – but says its third-quarter OEM revenue grew 31 per cent and capsule production has surged 71 per cent.
In a trading update for the three months to March 31, said the increased production was to fulfill a $2.3 million OEM order from an existing customer to produce 120 million capsules by the end of the year.
Meanwhile, the company’s Vietnamese distributor Happy Co reached its yearly target of $1 million in March this year, exceeding expectations. Star Combo is pursuing significant growth in Vietnam where the health supplement market is estimated to be worth $800 million.
Happy Co is selling Star Combo’s Costar proprietary health supplements range across the country.
Star Combo CEO, Su Zhang said the company will enter a significant new phase as its upgrade to manufacturing facilities completes in the second half of this financial year. The company has invested $10.7 million to upgrade its manufacturing facility in Smithfield, NSW. Production in this TGA approved facility will commence in July.
“The company is readying itself for larger output and associated revenue growth. We will continue to be constrained by supply challenges however, we are working hard to ensure it maximises our ability to grow output. Pleasingly, we continue to see strong demand for Australian made health products,” she said.
The business’ retail division – including online sales and retail store sales – was adversely affected by the pandemic, leading to a year-on-year sales decline.
“We will continue to be constrained by supply challenges, however the company is working hard to ensure it maximises its ability to grow output,” she said.
“Pleasingly, we continue to see strong demand for Australian-made health products.”
