PETALING JAYA: Pharmaniaga Bhd’s net profit plunged 96.8% to RM481,000 for the third quarter ended September 30, 2019 against RM15.05 million in the same quarter a year ago, due to higher operating expenditure as a result of non-recurring expenses.
Revenue for the quarter, however, rose 22% to RM716.85 million from RM587.66 million, underpinned by stronger demand from the concession and non-concession businesses.
Pharmaniaga’s nine-month net profit fell 22.7% to RM29.38 million from RM38.03 million on the back of a 17.7% increase in revenue to RM2.1 billion from RM1.79 billion.
During the period, its logistics and distribution division posted a higher profit before tax (PBT) of RM17 million versus RM12 million in the same period last year, driven by better contributions from the non-concession business.
The manufacturing division recorded a PBT of RM36 million in line with order trends from the government sector.
However, the Indonesia division recorded a deficit of RM700,000, mainly due to higher finance costs and increased operating costs.
Looking ahead, Pharmaniaga managing director Datuk Farshila Emran foresees a further impact on earnings due to higher amortisation of the Pharmacy Hospital Information System in the final quarter of the year.
“Nevertheless, we remain optimistic on long-term prospects, particularly given the extension by the Ministry of Health (MoH) for Pharmaniaga’s services for the provision of medicines and medical supplies to MoH facilities from December 1, 2019 to December 31, 2021. In addition, we will also continue to provide logistics and distribution services to MoH for a period of five years ending December 31, 2024.”
She added that the group is well-equipped to continue providing quality products and services.
“In the interim, we remain focused on strengthening our capabilities and operational efficiencies to meet the healthcare needs of both our domestic and overseas markets.”
