Pharmaniaga records 14% increase in 1Q profit

KUALA LUMPUR: Pharmaniaga Bhd, Malaysia’s largest pharmaceutical company, recorded a 14.1% increase in net profit for the first quarter of 2020 to RM22.4 mil over the RM19.62 mil a year earlier.

Revenue, meanwhile, rose to RM819.92 mil from RM786.11 mil in the corresponding period last year, thanks to stronger demand from its Indonesia division, which chalked up a 20.2% revenue growth to RM239.19 mil, it said in a filing with Bursa Malaysia today.

The company also declared a first interim dividend of 6 sen per share for the financial year ending Dec 31, 2020, which is the same rate as last year.

Pharmamiaga said the group was dedicated to fulfilling its contract with the Ministry of Health (MoH) for the provision of medicines and medical supplies to MoH facilities, as well as logistics and distribution services.

“In tandem with this, to ensure sustainable growth, the group continues to enhance manufacturing and operational efficiencies and expand its research and development capabilities to explore new avenues to grow its business, including for its Indonesian operations,” it said.

The group’s revenue grew 14.6% compared with the fourth quarter of 2019. It primarily attributed the improvement to stronger demand from government and private hospitals in Malaysia and Indonesia.

“This saw the group post a profit before tax of RM31 mil compared with a deficit of RM238 mil in the immediate preceding quarter,” it said.

In October last year, it was reported that MoH would not renew the group’s concession to distribute drugs and medical supplies to government hospitals when it ended on Nov 30, 2019 as the administration moved away from concessionaires towards an open tender system.

However, at the end of last year, the group secured a five-year extension for its logistics and distribution services contract with the ministry.

Pharmaniaga’s major shareholders are the Armed Forces Fund Board’s (LTAT) 59.45% subsidiary Boustead Holdings Bhd (55.93%) and LTAT (11.12%). – May 19, 2020, Bernama

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