Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 20): Pharmaniaga Bhd reported today a 97% drop in third quarter net profit to RM481,000 from RM15.05 million a year earlier as operating expenses rose. Profit before tax fell to RM3.89 million from RM17.1 million, it said.

In a statement to Bursa Malaysia today, Pharmaniaga said revenue, however, rose 22% to RM716.85 million in the third quarter ended Sept 30, 2019 (3QFY19) from RM587.66 million a year ago, due to stronger demand from the concession and non-concession businesses.

"However, as a result of higher operating expenditure due to non-recurring expenses, the group recorded a profit before tax of RM4 million, a decrease of 77.9% from the same quarter last year," it said.

For the cumulative nine-month period (9MFY19), the group said net profit declined to RM29.38 million from RM38.03 million a year earlier. Revenue was, however, higher at RM2.1 billion versus RM1.79 billion.

Looking ahead, Pharmaniaga said for the final quarter of FY19, the group foresees further impact on earnings due to higher amortisation of the Pharmacy Hospital Information System.

"Nevertheless, the group remains optimistic on long-term prospects, particularly given the extension by the Ministry of Health (MoH) for Pharmaniaga's services for the provision of medicines and medical supplies to MoH facilities from Dec 1, 2019 to Dec 31, 2021. In addition, the group will also continue to provide logistics and distribution services to MoH for a period of five years ending Dec 31, 2024.

"Given its proven track record and performance, the group is well-equipped to continue providing quality products and services. In the interim, Pharmaniaga remains focused on strengthening capabilities and operational efficiencies to meet the healthcare needs of both domestic and overseas markets," it said.

At Bursa's 12:30pm afternoon break today, Pharmaniaga's share price settled down four sen or 1.67% at RM2.36. The stock saw 150,300 shares traded.

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