Pharmaniaga allocates RM295mil for FY22 capex

KUALA LUMPUR: Pharmaniaga Bhd is allocating RM295 million for the group's capital expenditure (capex) budget in the financial year 2022 (FY2022), compared with RM106.9 million in FY2021.

Chief financial officer Norai'ni Mohamed Ali said the capex allocation would be largely for logistics and distribution which accounted for 61 per cent, followed by manufacturing (36 per cent) and Indonesia (three per cent).

"For logistics and distribution, we are looking at the expansion of new warehouse, central distribution centre for the private sector, digitalisation, purchase of software for long-term medication project and migration system and purchase and replacement of existing warehouse and office equipment," she told a virtual media briefing on the company’s results for the third quarter (Q3) ended Sept 30, 2021 today.

While for manufacturing, she said the group would continue to use half of allocation to invest in halal vaccines and halal insulin projects.

"Not to forget our Indonesian counterpart, we are also investing in automation and digitalisation as well as upgrade of various computer and lab equipment," she added.

Meanwhile, group managing director Datuk Zulkarnain Md Eusope said the group would emphasis on research and development efforts which were also the key pillars of Pharmaniaga's growth, enabling it to expand product pipeline and providing better solutions to the country.

"This was aimed to support Malaysian government to be pandemic ready in the future.

"Digitalisation and digital technologies will be the backbone of these effort," he said.

Zulkarnain said Pharmaniaga would continue with the Sinovac COVID-19 vaccine fill and finish manufacturing to meet domestic and international demands, as the group has the expertise, capabilities and facilities as well as full support from technical partners from overseas.

"At the same time, we will embark on setting up an insulin manufacturing plant which will be located at our high-tech Pharmaniaga LifeScience site in Puchong, while the setting up of the world’s first halal vaccine plant is progressing on track.

"On our logistics and distribution business with the Ministry of Health (MoH), we will continue and currently we are in negotiating with the government for the finalisation of the new concession/contract," he added.

Pharmaniaga's net profit for the Q3 ended Sept 30, 2021 widened to RM49.83 million from RM1.44 million registered in the same quarter a year ago, while revenue jumped to RM2.13 billion from RM624.8 million, attributed to the positive growth across the group's concession, non-concession and Indonesian businesses.

The non-concession business was a key driver due to sales of the Sinovac COVID-19 vaccine to the MoH as well as the private sector.

The company has declared a third interim dividend of two sen per share with ex date on Dec 6, 2021, entitlement date on Dec 7 and payable on Dec 29, 2021. - Bernama
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