KUALA LUMPUR: Pharmaniaga Bhd's net profit plunged 94.7% to RM722,000 in the second quarter ended June 30 (2Q), from the RM13.7mil posted in the same quarter last year.
The pharmaceutical group saw its revenue fall 35.3% to RM761.1mil from RM1.18bil last year. Earnings per share for the quarter dropped to 0.06 sen against 1.05 sen a year ago.
Pharmaniaga said it reported lower sales from its non-concession segment due to the timing of orders from MOH on products under the tender business.
There was also lower revenue in other segments including Indonesia businesses as a result of the festive season during the quarter.
For the first six months to June 30, Pharmaniaga's net profit fell 22.8% to RM28.46mil from RM36.84mil, while revenue declined 12.6% to RM1.72bil from RM1.97bil.
The group declared its second interim dividend of 0.5 sen per share in respect of the financial year ending Dec 31, 2022, which will be paid on Oct 4 to shareholders on the register as of Sept 12.
In a statement, group managing director Datuk Zulkarnain Md Eusope said: "We are pleased with the encouraging growth registered by the core divisions that reflect our effective and sustainable business strategies.”
He said transformation initiatives, especially digitalisation in logistics and distribution for our operations in Malaysia and Indonesia, will be the key drivers in improving operational efficiencies that contribute to the group's bottom line.
“The Indonesian operations’ revenue increased by 12.4% and with a population of approximately 280 million, the third largest nation remains a key market for the group.
“The successful turnaround of the Indonesian business was achieved by enhancing operational efficiency by adopting digitalisation, and we aim to maintain the segment’s profitability for the foreseeable future,” Zulkarnain said.
He added that the group is also focusing on leveraging its business portfolio in the private market, especially for over-the-counter and ethical products to pharmacies, hospitals and clinics across the country.
On prospects, Zulkarnain said, as the world transitions into the endemic phase, the company has implemented well-executed strategies in all divisions and is heading in the right direction following its business plan.
"We remain confident of achieving our business targets by year-end," he said.