KUALA LUMPUR (May 20): Pharmaniaga Bhd, the country's largest listed pharmaceutical company, saw its net profit grow 19.9% to RM27.73 million in the first quarter ended March 31, 2022 (1QFY22) from RM23.14 million a year ago, on higher contribution from its logistics and distribution division as new products were added into the Ministry of Health's (MoH) approved products purchase list, coupled with the Indonesian division returning to the black in the current quarter under review.

This resulted in a higher earnings per share of 2.12 sen for 1QFY22 from 1.77 sen for 1QFY21.

Revenue for the quarter also rose 21.3% to RM962.17 million from RM793.5 million a year ago, on improved performance across the group's concession and Indonesian businesses as a result of strong demand from customers following the resumption of business activities after the Covid-19 pandemic.

The group also declared a first interim dividend of 0.8 sen for the financial year ending Dec 31, 2022 (FY22), payable on July 6.

In a bourse filing on Friday (May 20), Pharmaniaga said its Indonesian business successfully staged a swift turnaround in 1QFY22, highlighting the effectiveness of the reorganisation of the business to enhance its operational efficiency through an ongoing stock optimisation exercise and aggressive payment collection.

"Going forward, the group is strengthening its business footprint in Indonesia as it has huge untapped potential. The group will revamp the current business model of its logistics and distribution arm PT Millennium Pharmacon International Tbk and increase the products portfolio of its manufacturing arm PT Errita Pharma. With strategic business and marketing plans in place, the group is focusing to double up the revenue for the Indonesian division," it added.

Locally, Pharmaniaga said it is moving alongside the nation to focus on growing its core businesses of logistics concession of medical supply, as well as manufacturing of generic pharmaceutical and consumer healthcare products.

In a separate statement, Pharmaniaga group managing director Datuk Zulkarnain Md Eusope said the group is in the midst of finalising the logistics and distribution contract extension agreement with the MoH, slated to be completed by the third quarter of 2022.

He added that the group is supplying and distributing the Hepatitis C drug, Ravidasvir, Sinovac Covid-19 vaccine as well as other vaccines through the Malaysia Healthcare Travel Council’s participating hospitals and healthcare centres.

“We will assist in the development of the platform and system for the vaccination programme. This collaboration is expected to provide Pharmaniaga with another recurring income stream and contribute to the group’s bottom line going forward," he said.

Meanwhile, construction of the world’s first halal vaccine and insulin facilities by Pharmaniaga is on track for commercialisation by 2025.

"Being cognisant of global market sentiments being impacted by the ongoing Russia-Ukraine conflict as well as the increased inflationary pressures and supply chain disruptions, the group remains cautiously optimistic of its business growth going forward," Pharmaniaga said.

At 3.07pm, Pharmaniaga’s share price was unchanged at 71.5 sen, with one million shares traded, valuing the group at RM930.2 million.