Adventa Q1 net profit plunges

PETALING JAYA: Adventa Bhd's net profit for the first quarter ended Jan 31, 2014 fell 99% to RM1.4 million compared with RM197.69 million in the previous corresponding period, due to the absence of a gain on disposal of investment in subsidiaries accounted for a year ago.
This was despite revenue doubling to RM7.11 million from RM3.55 million previously. The improvement in revenue comes from rapid growth in the sterilisation services and medical supplies business after the divestment exercise and improved focus on the current business units.
Adventa was lifted from being classified as a Practice Note 17 company effective Feb 21, 2014 after the disposal of major assets and the glove manufacturing unit. It will continue to strengthen focus and sustainability in its new core businesses.
"The group is progressing well, maintaining the trend of last quarter's improvement. The results of first quarter showed the continuous improvement in revenue and profits particularly in medical services business," it said in a filing with Bursa Malaysia yesterday.
It said its sterilsation services have gained new customer accounts that will yield better revenue from its available capacity. Capacity utilisation has improved from 40% to 47% this quarter.
"The ongoing trials and premarket studies for home peritoneal dialysis is progressing well. We are still on schedule to commercially launch the service the last quarter of this year," Adventa said.