Pharmaniaga proposes 5 sen dividend despite lower Q3 earnings

PETALING JAYA: Pharmaniaga Bhd’s net profit dropped 72.6% to RM3.58 million for the third quarter ended Sept 30, 2017 from RM13.06 million in the previous corresponding period, dragged down by lower off-take for in-house products, higher cost of sales and taxation.

Revenue, however, increased 11.5% to RM574.5 million from RM515.22 million.

The group has proposed to declare an interim dividend of 5 sen per share for the quarter under review, payable on Dec 15.

Pharmaniaga said in a filing with the stock exchange that its top-line growth was bolstered by solid contributions from its businesses, particularly its overseas operations.

Pharmaniaga said the group is on track to deliver new product offerings for both local and overseas markets for the coming years ahead, which should strengthen earnings potential.

Over the long term, it is of the view that the group’s prospects remain positive and is well prepared to tap into the opportunities following the initiatives announced by the government under Budget 2018.

“From the total allocation of RM27 billion to provide quality healthcare services, RM2.5 billion has been allocated for medical suppliers and RM1.6 billion for consumable and medical support items. Along with this, funds have been allocated for the treatment of increasing cases of rare diseases and a programme to raise awareness on noncommunicable diseases.”

Pharmaniaga’s nine-month net profit fell 31% from RM46.44 million to RM32.02 million, with revenue rising 6.5% from RM1.61 billion to RM1.71 billion.

Its shares fell 4 sen or 1% to close at RM3.82 yesterday on some 513,700 done.