Pharmaniaga Q1 net profit slips to RM2.65mil

Pharmaniaga says Indonesia remains a key growth driver.

PETALING JAYA: Pharmaniaga Bhd remains steadfast in its commitment to meeting its obligations to the Health Ministry and will continue to negotiate on the logistics and distribution concession agreement, which is expected to be concluded by the end of the interim period on June 30, 2023.

“Our biopharmaceutical facilities are set to produce commercial batches of halal vaccines and insulin by 2025 and these facilities will further solidify Pharmaniaga’s global standing as a reputable vaccine and insulin manufacturer, creating fresh sales prospects both locally and internationally,” it said in a filing with Bursa Malaysia yesterday.

For its first quarter ended March 31, 2023, Pharmaniaga’s net profit dipped to RM2.65mil from RM27.73mil in the previous corresponding quarter.

Revenue declined by 8.5% to RM880.45mil from RM962.17mil previously, mainly due to lower customer demand in both the concession and Indonesia segments.

Basic earnings per share stood at 0.20 sen, versus 2.12 sen previously.

“Indonesia remains a key growth driver with sales of medicine valued at roughly US$7.6bil (RM34bil) in 2020 and is forecast to expand to US$12.12bil (RM55bil) by 2025, according to US-based Fitch Ratings,” said Pharmaniaga.

“This encourages the group to further penetrate the Indonesian market and improve its position as a reliable healthcare provider in the region,” it added.

Additionally, Pharmaniaga said its reclassification to Practice Note 17 status as well as the recent 25-basis-points increase in the overnight policy rate posed a challenge to the group.