Apex posts record 3Q net profit of Rm27mil

PETALING JAYA: Apex Healthcare Bhd’s net profit for the third quarter ended Sept 30 (3Q22) grew by 92% year-on-year (y-o-y) to Rm26.88mil due to the strong contributions from its operating subsidiaries and associate company.

The company’s revenue rose to a new high of Rm232.08mil, up 10% y-o-y, on higher demand for pharmaceuticals, medical devices and consumer healthcare products from the domestic and international markets, it said in a filing with Bursa Malaysia.

In particular, sales of respiratory medications, including Apex’s cough and cold products, remained strong due to the prevalence of Covid-19 and influenza cases in the community.

“The prospects of sustaining this recovery momentum into 2023 have weakened in line with growing pessimism over global growth prospects,” it added.

Meanwhile, share of profits from Apex’s associate company, Straits Apex Group Sdn Bhd (SAG), rose to Rm7mil during the quarter under review from Rm0.5mil in same period of last year.

This was due to the uninterrupted production throughout the quarter which enabled SAG to fulfil scheduled customer orders.

For the first nine months of 2022, Apex achieved a 15% y-o-y growth in revenue to Rm657.2mil due to the strong sales performance of operating subsidiaries as the recovering economy, increasing consumer activity and prevalence of respiratory illnesses in the community.

Net profit for the nine-month period rose by over 70% y-o-y to Rm66.14mil.

“Share of results from the associated company is RM 15.1mil, significantly higher than the Rm1.5mil recognised in 2021,” it said, adding this was due to the significantly higher customer orders secured for delivery in 2022.

“Year-to-date scheduled fulfilment of these orders have been made possible because of uninterrupted production in the last two quarters,” it added.

Apex said its profit before tax (PBT) for the nine-month period reached a new high of Rm80.1mil or 60% higher than the Rm50.1mil in the previous corresponding period.

“This also exceeds the group’s PBT achieved for the whole of financial year 2021,” it

added.