Strategic plan bolsters Pharmaniaga 1Q results

PETALING JAYA: Pharmaceutical player Pharmaniaga Bhd is poised for a promising outset in 2024 on the back of comprehensive restructuring of operations and implementation of strategies under the groups’ strategic plan of Vision 525, says executive director Zulkifli Jafar.

“Our strategic blueprint, anchored by five principal pillars – fortifying engagement in the public sector, enhancing biopharmaceutical endeavours, streamlining costs, expanding into private markets and transforming operations in Indonesia – continues to guide our long-term growth and value creation efforts,” he said in a statement.

Anchoring its prospects, the Practice Note 17 status company witnessed strong earnings for its first quarter of 2024 (1Q24) ended March 31, 2024, as its net profit skyrocketed to RM25.65mil from RM2.65mil in the previous year.

The group’s net profit reflects an earnings per share of 1.78 sen for 1Q24.

Higher profits were seen across all its business segments, whereby its logistics and distribution segment in Malaysia posted a higher profit after tax of RM18.9mil from RM5.2mil previously.

It said the hike was attributable to the improved revenue from the concession business due to new products being introduced to the Health Ministry’s (MOH) approved product purchase list, coupled with price revisions under the new concession agreement.

Its local manufacturing division registered a profit after tax of RM6.2mil, up from RM233,000 previously, driven by newly awarded tenders from MOH and increased demand.

Meanwhile, Pharmaniaga’s division in Indonesia posted an improvement in profit after tax to RM1.1mil from RM21,000, propelled by 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.

Pharmaniaga opened its two new distribution branches, each in Purwakarta and Mataram, bringing the total to 35 branches in the country.

As for its revenue, the group saw a 9.6% year-on-year (y-o-y) growth to RM964.96mil from RM880.45mil in 1Q23.

The increase in revenue was said to be primarily driven by heightened customer demand in both concession and Indonesia segments.

According to Zulkifli, Pharmaniaga’s significant performance underscores the group’s recovery trajectory and resilience amidst the 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 the 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 added.

Pharmaniaga 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 said.

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