Pharmaniaga Q1 earnings fall to RM18mil

PETALING JAYA: Pharmaceutical firm Pharmaniaga Bhd’s net profit fell 42.2% to RM18.38mil in the first quarter financial year ended March 31, 2016, from a year ago. This was against a 18.5% hike in revenue to RM559.20mil.

Basic earnings per share dropped to 7.10 sen from 12.28 sen. An interim dividend of 4 sen per share was declared, which will be paid out on June 28, 2016.

The pharmaceutical firm said the lower earnings was due to increased selling and distribution costs, amortisation of Pharmacy Information System and higher finance costs.

The higher revenue, on the other hand, was mainly driven by more demand from Government hospitals for both the concession and non-concession business, apart from stronger contribution from its Indonesian operations.

With net assets per share of RM1.99 as at March 31, 2016, the group said its logistics and distribution arm posted a profit before tax (PBT) of RM0.8mil for the quarter under review, a decline from RM10.8mil in the corresponding period, a year ago, on higher expenses as mentioned above.

But this was cushioned by the its prudent spending on promotional activities and cut in selling and distribution costs. Its manufacturing division also saw a lower PBT of RM25.7mil from RM27.8mil, a year ago.

“We are pleased to start the year off with a satisfactory performance for the first quarter. “Our well-established foundation and ongoing cost optimisation measures have enabled us to deliver sustainable results, even amidst the volatile economic landscape,” said chairman Tan Sri Lodin Wok Kamaruddin ( pic).

The group would continue to leverage on the strong fundamentals of the Malaysian economy, with a focus on expanding its business globally in key markets such as Indonesia and the European Union.