Pharmaniaga Q2 profit slips on higher corporate tax

KUALA LUMPUR: Pharmaniaga Bhd’s net profit for the second quarter slipped 43.3% to Rm5.4mil on the back of higher corporate tax as a result of increased profitability of certain subsidiaries.

The group’s revenue for the period, however, rose 12.5% to RM582.7mil in line with increased demand from Government hospitals.

The group said profit before tax (PBT) for the three months ended June 30, 2018, had increased to RM12mil from RM10mil in the same quarter last year as a result of improved contributions despite higher operating expenses including finance costs, provision for stock obsolescence, depreciation and amortisation.

For the first half of the year, the group’s revenue surpassed the RM1.2bil mark, an increase of 5.7% from RM1.1bil a year ago. 

Consequently, the Group’s PBT grew to RM41mil compared with RM38 million in last year’s corresponding period on the back of better contributions, albeit higher operating expenses.

The manufacturing division posted a PBT of RM34mil, on par with last year’s corresponding period primarily due to reduced orders under the concession business. 

Meanwhile, the Indonesia division's PBT of RM1mil was also on par with the same period last year, mainly due to the depreciation of the Ringgit against the Indonesian Rupiah and increased finance costs.

“Moving forward, the Group is committed to expanding its market presence in the private sector, particularly in the consumer healthcare segment via strategic marketing initiatives. 

“Pharmaniaga’s Indonesia operations remain a key contributor and the Group is focused on strengthening business synergies between its subsidiaries, PT Millennium Pharmacon International and PT Errita Pharma, to tap into opportunities in this growing market,” it said.