Pharmaniaga’s earnings driven by govt hospitals

By FARA AISYAH / Pic By TMR

Pharmaniaga Bhd’s net profit for the third quarter ended Sept 30, 2018 (3Q18), surged to RM15.05 million from RM3.58 million a year ago on the back of improved revenue and lower operating expenses.

In addition, the lower profit after tax recorded in 3Q17 was mainly due to recognition of the prior year’s corporate tax.

Revenue for the quarter rose marginally to RM587.66 million from RM574.5 million in 3Q17 as a result of increased demand from government hospitals.

For the nine-month period, revenue stood at RM1.8 billion, a 4.5% increase from the RM1.7 billion made in the same period last year.

Pharmaniaga posted a net profit of RM39 million versus a net profit of RM33 million in last year’s corresponding period, due to higher demand for its pharmaceuticals from government-run hospitals and lower operating expenses.

The logistics and distribution division turned in an improved pretax profit (PBT) of RM12 million year-to-date (YTD), mainly on stronger contributions from the concession business coupled with reduced operating expenses, according to its filing on Monday.

Pharmaniaga’s manufacturing division recorded a PBT of RM50 million for the nine-month period, which was consistent with previous corresponding period’s PBT.

Its Indonesian division posted a lower PBT of RM100,000 YTD, compared to RM3 million in the same period last year, due to the weakening of the rupiah against the ringgit, as well as higher finance costs.

Pharmaniaga is confident on its outlook ahead, particularly in light of the Budget 2019 announcement on scaling up of the healthcare sector. 

“Moving forward, the group remains committed to expanding its market presence in the private sector via strategic marketing initiatives, alongside concurrent focus on strengthening business synergies between its subsidiaries, PT Millennium Pharmacon International and PT Errita Pharma, to tap into opportunities in this growing market,” it added.

For 3Q18, Pharmaniaga declared a third interim dividend of five sen, to be paid on Jan 3, 2019.