Pharmaniaga Bhd recorded a profit after tax of RM29 million for the first half of its financial year ended 30 June 2017. Profit before tax (PBT) came in at RM38 million while revenue stood at RM1.1 billion.
The Logistics and Distribution Division posted a higher PBT of RM4 million for the six-month period, marking a turnaround from the deficit of RM4 million in the previous year’s corresponding period. This was achieved on the back of stronger contributions from both the concession business and private sector businesses.
The Manufacturing Division registered a lower PBT of RM34 million compared with RM55 million in the same period last year. This was mainly attributable to the temporary closure of certain production lines for preparatory works to facilitate the commercialisation of new products that have been approved ahead of schedule, which resulted in lower production by our manufacturing facilities for the period.
Meanwhile, the Indonesia Division recorded a higher PBT of RM2 million, compared with a deficit of RM0.6 million in last year’s corresponding period. This was primarily due to improved contributions as a result of a production rationalisation exercise, as well as lower finance costs.
As part of the Group’s commitment to delivering shareholder value, the Board declared a second interim dividend of 4 sen per share for the financial year ending 31 December 2017. The dividend will be paid on 15 September 2017 to shareholders on the register as at 4 September 2017.
Tan Sri Lodin Wok Kamaruddin, Chairman, Pharmaniaga said, “While our Divisions contributed positively to our earnings during the period under review, our performance was impacted by the temporary closure of production lines in our Manufacturing Division. Despite this, we are encouraged by the fact that this will enable the Group to move forward with the commercialisation of new products. This is certainly testament to the Group’s strong research and development initiatives, more so as these products were approved ahead of schedule.”
“As we move forward, we are confident that long-term prospects are bright for Pharmaniaga. A strong indicator of this is the proposed extension of our Concession Agreement (CA) with the Ministry of Health (MOH) which is currently under review. Over the course of the current CA, we are pleased to note that we have fully complied with the prescribed performance standards. Furthermore, the implementation of the Pharmacy Information System (PhIS) at over 1,100 facilities nationwide was a key achievement for the Group and has received high commendations from MOH. Although we are not in the Information Technology sector, the smart partnership concept provided us with a competitive advantage in developing and driving the PhIS.”
“With the proposed extension of the CA, we hope that the Government will continue to place their trust in Pharmaniaga and allow us to continue delivering a high standard of services to MOH,” concluded YBhg Tan Sri Dato’ Seri Lodin.
Pharmaniaga’s existing 10-year CA with MOH which kicked off on 1 December 2009 is a core business and key revenue generator for the Group, involving the purchasing, storage, supply as well as distribution of approved drugs and medical products to Government hospitals and clinics throughout the nation.