Pharmaniaga 1Q earnings rise on higher sales domestically and in Indonesia

by TMR / Pic by TMR FILE

PHARMANIAGA Bhd’s net profit for the first quarter ended March 31, 2022 (1Q22), increased 20% year-on-year (YoY) to RM27.7 million from RM23.1 million posted a year ago for the same period driven by improved sales.

Revenue for the quarter rose 21% YoY to RM962.1 million driven by healthy growth across the group’s concession and Indonesian businesses as a result of strong demand from the customers subsequent to the resumption of normal business activities post removal of Covid-19 pandemic restrictions.

Earnings per share for the quarter was 2.12 sen a share, its filing to the exchange today stated.

In a separate statement, Pharmaniaga also attributed the improved results to higher contribution by its logistics and distribution division as new products were added to the Ministry of Health (MoH) Malaysia’s Approved Products Purchase List, coupled with its Indonesian business returning to the black. 

The accomplishment of both divisions was partly due to Pharmaniaga’s reorganisation and restructuring plans and an increase in digitalisation to enhance operational efficiency.

Pharmaniaga Group MD Datuk Zulkarnain Md Eusope said the group was finalising the logistics and distribution contract extension agreement with the MoH, slated to be completed by 3Q22.

He added the Indonesian Division has also successfully staged a swift turnaround. 

“This highlights the effectiveness of the reorganisation of the Indonesian business to enhance its operational efficiency through an ongoing stock optimisation exercise and aggressive payment collection.

“Going forward, we are strengthening our business footprint in Indonesia as it has huge untapped potential. We will revamp the current business model of our logistics and distribution arm there, PT Millennium Pharmacon International Tbk, and increase the products portfolio of our manufacturing arm, PT Errita Pharma.

With strategic business and marketing plans in place, we are focusing on doubling the revenue for the Indonesian division,” said Zulkarnain.

Pharmaniaga is collaborating with the Malaysia Healthcare Travel Council to supply and distribute the Hepatitis C drug, Ravidasvir, Sinovac Covid-19 vaccine and other vaccines to participating hospitals and healthcare centres.

The collaboration is expected to provide Pharmaniaga with another recurring income stream and contribute to the group’s bottom line going forward.

Pharmaniaga declared its first interim dividend of 0.8 sen per share, which will be paid on July 6, 2022, to shareholders on the register as of June 8, 2022.