This article first appeared in The Edge Financial Daily on May 17, 2018

KUALA LUMPUR: Pharmaniaga Bhd’s net profit fell 7.1% to RM17.59 million in the first quarter ended March 31, 2018 (1QFY18) from RM18.92 million a year ago, dragged down by lower profit from the manufacturing division and losses from its Indonesia division.

Quarterly revenue was also marginally lower at RM617.92 million from RM618.29 million a year ago.

Nevertheless, the group declared a first interim dividend of five sen for the financial year ending Dec 31, 2018 (FY18), payable on June 20.

In a filing with Bursa Malaysia yesterday, Pharmaniaga said its manufacturing division’s pre-tax profit fell to RM20 million in 1QFY18 from RM26 million in 1QFY17, primarily due to lower demand under the concession business and higher research and development expenses.

The Indonesia division recorded a pre-tax loss of RM400,000 in 1QFY18 versus a pre-tax profit of of RM900,000 a year ago, mainly due to the depreciation of the ringgit against the rupiah and increased finance costs.

In a separate statement, Pharmaniaga chairman Tan Sri Lodin Wok Kamaruddin said looking ahead, the group is on track to deliver its business strategy of market driven-growth and continuous operational improvements.

“We will continue to focus on tapping opportunities in domestic and international markets, with new product offerings driven by research and development, “ he added.