Pharmaniaga's 1Q performance shows promise, says ED

KUALA LUMPUR: Pharmaniaga Bhd is poised for a promising outset in 2024, following a comprehensive restructuring of

business operations, said executive director Zulkifli Jaafar.

The projection accompanies a set of strong earnings for the Practice Note 17-status company, which saw its net profit in the first quarter ended March 31, 2024, soar to RM25.65mil from RM2.65mil in the previous corresponding quarter.

The group's earnings per share jumped 1.78 sen from 0.2 sen previously while revenue rose to RM964.96mil from RM880.45mil in the comparative quarter.

There were higher profits across the group's business segments.

In the logistics and distribution division, profit after zakat and taxation (PAT) jumped to RM18.9mil from RM5.2mil in 1QFY23 on higher revenue from the concession business.

The manufacturing division registered PAT of RM6.2mil, up from RM200,000 in the same quarter in 2023 on new tenders awarded by the Ministry of Health and increased demand, as well as manufacturing efficiency and cost containment measures.

Meanwhile, the group's Indonesia division registered PAT of RM1.1mil, up from just RM20,000 in the year-ago quarter due to a surge in demand for products of existing principals as well as additional sales from two new distribution branches that commenced operations in February this year.

According to Zulkifli, the significant performance underscores the group's recovery trajectory and resilience amidst a challenging economic landscape, driven by its improved operational capabilities and cost control measures.

“The group has submitted its Regularisation Plan to Bursa Malaysia on Feb 23, 2024, which marks a significant milestone for Pharmaniaga as we remain focused to exit from PN17 status, as well as improving profit margins and practising cost optimisation measures to ensure resilience and sustainable business growth, as part of our Vision 525," he said.

Meanwhile chairman Izaddeen Daud said the group's commitment to fiscal discipline fuels its focus on efficiency, cost optimisation, margin, and revenue growth.

"Through strategic initiatives, we are solidifying our foundation for long-term success, ensuring resilience and adaptability in the evolving pharmaceutical industry,” he added.

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