Pharmaniaga reports narrower loss for FY2023 on restructuring initiatives
KUALA LUMPUR: Pharmaniaga Bhd’s net loss for the financial year ended December 31, 2023 (FY23) narrowed to RM77.45 million from RM629.92 million in FY22.
Revenue dropped to RM3.40 billion from RM3.48 billion, representing a 2.2 per cent decrease, mainly due to the reduction in revenue from its concession business as a result of a lower budget allocation.
For the fourth quarter (4Q), its net loss shrank to RM32.72 million from a loss of RM644.39 million, while revenue slid to RM789.81 million from RM862.72 million in the previous year.
The pharmaceutical group sees a promising outlook this year following a comprehensive restructuring of business operations and the implementation of numerous initiatives aimed at revitalising the group in 2023.
“(The better performance) was anchored by a coherent strategic blueprint, articulated through five principal pillars - fortifying our engagement in the public sector, enhancing our biopharmaceutical endeavours, streamlining costs, expanding into private markets, and transforming our operations in Indonesia.
“These efforts are intended to promote long-term growth and spark opportunities for value creation,” it said in a stock exchange filing.
Pharmaniaga revealed that it is finalising an acquisition vaccine development grant from the Ministry of Science, Technology, and Innovation (MOSTI).
“This grant not only underscores the government’s support for our endeavours but will also position the group at the forefront of healthcare innovation, particularly in the critical area of vaccine development,” it said.
The group said that it will continue to navigate through several challenges that impact its financial and operational performance.
“Factors such as global fluctuations in the US dollar, increased finance costs due to the rising overnight policy rate (OPR), elevated electricity tariffs, and higher labour costs following amendments in the Employment Act collectively exert pressure on our margins and overall profitability.
“In addressing these challenges, the group remains dedicated to the initiatives on improving profit margin and cost optimisation to ensure resilience and sustainability,” it said.