Pharmaniaga's Q2 net profit 36.5% lower

PETALING JAYA: Pharmaniaga Bhd's net profit for the second quarter ended June 30, 2017 fell 36.5% to RM9.52 million from RM15 million a year ago primarily due to lower production from temporary closure of certain production lines for preparatory works to facilitate the commercialisation of new products that were approved ahead of schedule.
Its revenue dropped 2.6% to RM517.97 million compared with RM531.80 million in the previous year’s corresponding quarter, mainly attributable to moderate orders from government hospitals.
For the six months period, Pharmaniaga's net profit declined 14.8% to RM28.44 million from RM33.37 million a year ago, largely due to lower production by its manufacturing facilities. Revenue of RM1.14 billion was slightly higher than the RM1.09 billion in the previous year's corresponding period.
Pharmaniaga said it registered positive contributions from its divisions during the period under review.
"Although earnings were impacted by the temporary closure of production lines, this will subsequently enable the group to move forward with the commercialisation of new products as some of the products were approved ahead of schedule. This is certainly testament to the group's strong research and development initiatives," it said.
Moving forward, Pharmaniaga is confident that long-term prospects are bright for the pharmaceutical sector. The group remains focused on continuous improvements throughout its operations, coupled with its ongoing drive to reinforce its position as a leading generics manufacturer.