Pharmaniaga incurs RM178.6mil net loss in fourth quarter

Pharmaniaga said the higher revenue was mainly attributable to stronger demand from the concession, non-concession and Indonesia businesses.

PETALING JAYA: Pharmaniaga Bhd slid into a net loss of RM178.6mil for the fourth quarter ended Dec 31,2019, from a net profit of RM4.4mil in the corresponding quarter in the preceding year.

For the quarter in review, the pharmaceutical company saw its revenue grow 20% to RM715.7mil from RM596.6mil.

Pharmaniaga said the higher revenue was mainly attributable to stronger demand from the concession, non-concession and Indonesia businesses.

“However, as a result of the revision in useful life of the rights to supply, a non-cash item worth RM247mil and the provision of stock write-off on the voluntary Ranitidine product recall, the group recorded a loss before zakat and taxation (LBT) of RM238mil, ” it said in a statement.

Pharmaniaga said the rights to supply were expenses incurred for Pharmacy Information System in providing and supplying to the government certain hardware and software, being part and parcel of the ordinary contractual obligations under the concession agreement.

“The title of the said hardware and software vests with the government of Malaysia. With the new contract arrangement as explained in A6, the remaining unamortised rights to supply has been fully recognised in the current period, ” it said.

For the full year, Pharmaniaga’s net loss stood at RM149.2mil, or 57.2 sen per share, compared with a net profit of RM42.5mil, or 16.33 sen per share, in 2018 due to lower contribution margins from manufacturing division and the provision of stock write off as a result of voluntary Ranitidine product recall.

It, however, registered a higher revenue of RM2.8bil compared with RM2.4bil in previous year.

“This was achieved on the back of solid performances from concession, non-concession and Indonesia businesses. However, as a result of the revision in useful life of the rights to supply as explained, the group posted a LBT of RM192mil, ” it said.