Higher corporate tax drags Pharmaniaga's 2Q net profit down 43%

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KUALA LUMPUR (Aug 17): Pharmaniaga Bhd saw its net profit fall 43.3% to RM5.39 million in the second quarter ended June 30, 2018 (2QFY18) from RM9.52 million a year ago, on higher corporate tax as a result of increased profitability of certain subsidiaries.

As a result, earnings per share came in lower at 2.08 sen for 2QFY18 compared with 3.67 sen for 2QFY17.

It is worth noting that the group's pre-tax profit actually grew to RM11.97 million in 2QFY18 versus RM10.15 million a year ago.

Quarterly revenue, however, was up 12.5% to RM582.73 million from RM517.97 million in 2QFY17, mainly due to increased demand from government hospitals.

The pharmaceutical company also declared a second interim dividend of 4 sen for the financial year ending Dec 31, 2018 (FY18), payable on Sept 18.

For the cumulative six months (1HFY18), Pharmaniaga's net profit declined 19.2% to RM22.98 million from RM28.44 million a year ago, while revenue rose 5.67% to RM1.2 billion from RM1.14 billion in 1HFY17.

In a stock exchange filing today, Pharmaniaga said moving forward, the group is committed to expanding its market presence in the private sector, particularly in the consumer healthcare segment via strategic marketing initiatives.

"Pharmaniaga's Indonesia operations remain a key contributor and the group is focused on strengthening business synergies between its subsidiaries, PT Millennium Pharmacon International and PT Errita Pharma, to tap into opportunities in this growing market," it shared.

At 2.30pm, shares in Pharmaniaga were down 2 sen or 0.63% at RM3.16, with 10,400 shares done, bringing a market capitalisation of RM841.43 million.