Pharmaniaga Q1 net profit grew 21.24%

PETALING JAYA: Pharmaniaga Bhd's net profit grew 21.24% to RM31.79 million from RM26.22 million in the first quarter ended March 31, 2015, on higher profit margins from its manufacturing division.
Revenue was also up to RM471.9 million from RM468.67 million last year thanks to higher sales recorded from its private sector, particularly the group's Indonesian operations.
In a filing with Bursa Malaysia yesterday, Pharmaniaga said its manufacturing division posted higher pre-tax profit of RM27.8 million compared with RM23.4 million in the previous year's corresponding quarter.
Its logistics and distribution division however, recorded a lower profit before tax of RM10.8 million from RM14.8 million last year.
Commenting on its prospects, the group remains positive on its prospects for year as the healthcare industry continues to experience steady growth, both globally and in the region.
"The group is well-positioned to capitalise on new opportunities, particularly as it builds on the inherent prospects of Malaysia's pharmaceutical sector," it added.
Meanwhile, the company said its proposed joined venture (JV) agreement with Modern Healthcare Solutions Company Ltd for the construction and operation of a pharmaceutical manufacturing plant in Saudi Arabia has lapsed on May 16, in which both parties have not determined the new extension date.
Previously, Pharmaniaga has allocated RM60 million as an initial investment outlay for its 50% stake in the JV, in which Modern Group will hold the other 50%.