KUALA LUMPUR (Feb 21): Pharmaniaga Bhd slipped into the red with a net loss of RM836,000 or 0.32 sen per share for the fourth quarter ended Dec 31, 2016 (4QFY16), versus a net profit of RM16.06 million or 6.2 sen per share in the previous corresponding quarter, due to lower contribution from its concession business.

Revenue for the quarter was 14% lower at RM582.82 million compared to RM680.15 million recorded a year earlier.

Despite recording a loss for the quarter, Pharmaniaga announced an interim dividend of 3 sen, payable on March 17, 2017.

The group attributed the slump in financial performance to lower orders from the concession business, which was partly offset by improved contributions from its Indonesian operations and private sector business.

The performance of both its manufacturing division and logistics and distribution division was impacted by lower orders from the concession business.

"The decline in orders is partially caused by lower buffer stocks required in government hospitals due to our delivery efficiency," said Pharmaniaga.

For the full-year period, net profit declined 46% to RM45.6 million from RM84.04 million in the previous year, while revenue was flat at RM2.19 billion.

Pharmaniaga said the healthcare sector continues to offer good prospects going forward, supported by initiatives outlined in Budget 2017 such as the upgrading of new hospitals and clinics and the resupply of medicine to all government hospitals and health facilities.

"At the same time, the group remains focused on strengthening its international presence, as its Indonesian operations have seen good growth," said Pharmaniaga chairman Tan Sri Lodin Wok Kamaruddin in a statement.

At 12.30pm, Pharmaniaga was unchanged at RM5.12, giving a market capitalisation of RM1.33 billion.