Pharmaniaga earnings soar
First-half net profit up 51% on higher sales volume, better efficiencies
PETALING JAYA: Pharmaniaga Bhd’s net profit jump 51% to RM44.4mil in the first half ended June 30 compared with RM29.4mil in the same period a year ago on higher sales volume and better operational efficiencies.
The pharmaceutical group achieved RM903.48mil revenue for the six-month period, 15.6% higher than RM781.76mil achieved a year ago.
In a filing with Bursa Malaysia, Pharmaniaga said higher sales volume to the Government sector, coupled with improvement in operational efficiencies in both the domestic and overseas business, had contributed to an 11.1% increase in revenue for its logistics and distribution division.
“The manufacturing division recorded an outstanding performance in revenue, mainly due to the newly acquired subsidiary, Idaman Pharma Manufacturing Sdn Bhd,” it added.
For the second quarter, the group recorded a 12.9% rise in net profit to RM15.71mil compared with RM13.92mil in the corresponding quarter a year ago.
Revenue for the quarter increased 15% to RM456.74mil from RM396.44mil.
Pharmaniaga said its profit during the current quarter had been affected mainly by the one-off impact arising from the elimination of unrealised profit on goods supplied by Idaman Pharma to the group.
“The logistics and distribution division posted slightly lower results for the current quarter against the preceding quarter due to lower sales volume, pending the Government’s budget disbursement which is expected to be in the latter half of the year,” it said.
It added that its manufacturing division’s profit grew mainly due to the contribution from Idaman Pharma and improved productivity and manufacturing efficiencies at its plants.
Moving forward, Pharmaniaga believes the Malaysian pharmaceutical industry remains reasonably bright.
“The prevalence of various diseases, growing healthcare needs and ageing population are factors that will ensure a steady growth for the industry,” it said.
“The logistics and distribution division can look forward to stable recurring income from the concession business as the Government will continue to be the major purchaser of generic products in its quest to reduce the cost of healthcare.”
On the private sector front, the group continues to see growth opportunities in view of the patent expiry of blockbuster drugs, coupled with rising healthcare costs which will spur the demand for generic products.
Pharmaniaga said it would continue to invest in the development of a new range of products in anticipation of the growing demand for generic drugs as well as in brandbuilding activities to increase its market share.
Pharmaniaga expects to register an encouraging set of results for the current financial year.