Pharmaniaga 2Q net profit higher at nearly 10mil

Pharmaniaga's performance was driven by increased demand in the non-concession business.

KUALA LUMPUR: Pharmaniaga Bhd posted net profit of RM9.98mil in the second quarter ended June 30, 2020, which was an increase of 7.5% from the RM9.28mil a year ago following higher revenue from its non-concession business.

It announced on Wednesday its revenue increased by 7.3% to RM645.76mil from RM601.89mil. Earnings per share were 3.82 sen compared with 3.56 sen.

It declared an interim dividend of 2.5 sen, similar to a year ago. The dividend will be paid on Oct 6.

In the first half, its net profit increased by 12% to RM32.37mil from RM28.89mil. Its revenue was up 5.5% to RM1.46bil from RM1.38bil.

Acting managing director Mohamed Iqbal Abdul Rahman said the group’s performance was driven by increased demand in the non-concession business.

“This was primarily as a result of higher sales of personal protective equipment due to the ongoing Covid-19 pandemic.

“In tandem, Pharmaniaga continued to ensure a stable stream of medicines and medical supplies to Ministry of Health facilities, coupled with provision of logistics and distribution services.”

Mohamed Iqbal said Pharmaniaga, over a longer-term perspective, was focused on enhancing prospects by improving manufacturing and operational efficiencies, as well as progressing in our research and development efforts.

“This will allow us to tap on new opportunities, both in Malaysia and in our overseas markets, to ensure the sustainable growth of the group in the years ahead, ” he said.

Pharmaniaga said in 1H, the logistics and distribution division recorded a 96% increase in profit before tax of RM37mil, boosted by improved contributions from the non-concession business.

Its manufacturing division posted a profit before tax of RM13mil on the back of a revenue of RM137mil in line with order trends from government hospitals.

“The outlook remains positive for the division, with new product launches in the pipeline. In addition, further expansion into overseas markets, as well as increased capacity utilisation via its contract manufacturing business will be pursued by the group, ” it said