Friday 29 Mar 2024
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KUALA LUMPUR (Feb 15): Pharmaniaga Bhd saw its net profit for the fourth quarter ended Dec 31, 2015 (4QFY15) plummet 56.23% to RM16.06 million or 6.20 sen per share, from RM36.70 million or 14.18 sen a share a year ago.

The healthcare provided blamed the drop on increased promotional activities, research and development expenses, higher selling and distribution, as well as amortisation for the Pharmacy Information System.

Revenue for the quarter was 8.46% higher at RM680.15 million against RM627.10 million for 4QFY14.

“This was mainly as a result of higher demand from government hospitals in the quarter under review, as well as increased contributions from the group's Indonesian operations,” Pharmaniaga said in a filing with Bursa Malaysia today.

For the full financial year 2015, Pharmaniaga's net profit dropped 10.44% to RM84.04 million or 32.46 sen per share, from RM93.84 million or 36.25 sen per share in FY14.               

Revenue for the 12 months rose 3.3% to RM2.19 billion, compared to RM2.12 billion in FY14, mainly driven by stronger contributions from private sector business and the group’s overseas operations, it said.

The key contributor for the year was the manufacturing division, which recorded a higher profit before tax (PBT) of RM100 million, up from RM86 million in the last financial year. This was driven by ongoing cost optimisation and efficiency measures across the Group’s manufacturing plants, which led to reduced manufacturing costs, said Pharmaniaga.

Meanwhile, the logistics and distribution division posted a lower PBT of RM12 million, compared with RM40 million in the previous year, mainly attributable to lower government orders, increased promotional activities, higher selling and distribution expenses, as well as amortisation for the Pharmacy Information System.

The company declared a dividend of 7 sen per share, bringing the total payout for the year to 30 sen per share, as against 28 sen for FY14.

Pharmaniaga chariman Tan Sri Lodin Wok Kamaruddin described the results as satisfactory.

“Despite various external pressures during the year, including the falling Ringgit and the slowdown in the global economy, we were able to weather through these tough conditions and deliver satisfactory results,” he said.

“While 2016 will be challenging as these pressures persist, we will maintain our resolve to strengthen our position in the value chain as a leading integrated healthcare solutions provider,” he added.

Moving forward, Lodin said there are certainly bright prospects to be tapped in the pharmaceutical sector.

“A clear reflection of this are the initiatives outlined in the national budget for 2016, which includes a higher allocation for vaccines and medicines, an increase in the number of GST zero-rated medicines, as well as more clinics and hospitals to be built nationwide.”

“Furthermore, we are focused on expanding our presence in the European Union via our product portfolio, which is undergoing the necessary review and registration process. We also aim to mould our Indonesian operations into an important manufacturing and export hub for the ASEAN region,” he added.

Pharmaniaga shares closed unchanged today at RM6.19, for a market capitalisation of RM1.60 billion.

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