KUALA LUMPUR (Nov 26): Pharmaniaga Bhd posted a 33.5% increase in net profit for the third quarter ended Sept 30, 2015 (3QFY15) to RM19.97 million or 7.71 sen per share, from RM14.96 million or 5.78 sen per share a year ago, primarily due to ongoing cost optimisation measures which helped to reduce operating expenses.

Revenue for 3QFY15 rose 4.4% to RM524.41 million, from RM502.09 million in 3QFY14, mainly due to improved contributions from the group’s Indonesian operations.

The pharmaceutical company also declared a third interim dividend of 9 sen per share for the financial year ended Dec 31, 2015 (FY15), payable on Dec 21. This will bring cumulative dividend for the year to 23 sen.

For the cumulative nine months period (9MFY15), Pharmaniaga’s net profit rose 19% to RM67.98 million or 26.26 sen per share, from RM57.15 million or 22.07 sen per share in 9MFY14, largely due to favourable profit margins from the manufacturing division as a result of continuous cost optimisation initiatives, which led to reduced manufacturing costs.

This included batch consolidation, enhanced procurement exercises and increased production yields through utilisation of innovative methods, it said.

Revenue for 9MFY15 increased by a marginal 0.67% to RM1.51 billion, from RM1.5 billion in 9MFY14.

As at Sept 30, 2015, Pharmaniaga’s net assets per share stood at RM2.06.

In a statement today, Pharmaniaga chairman Tan Sri Lodin Wok Kamaruddin said the group is bullish on long-term prospects, particularly with the Budget 2016 announcement, demonstrating a clear emphasis on the development of the healthcare sector.

"With new hospitals to be built and a higher allocation for the supply of medicines and other pharmaceutical products to government hospitals and clinics, the group will be able to leverage on this, in order to deliver sustained growth," he added.

Lodin added that it will continue to build on the growing demand for healthcare products, while focusing on cost optimisation measures to maintain profitability.

As at 3.45pm today, Pharmaniaga shares were traded up 8 sen or 1.25% to RM6.50, with 50,400 shares exchanging hands, for a market capitalisation of RM1.66 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)