KUALA LUMPUR: Pharmaniaga Bhd’s net profit for the first quarter ended March 31, 2023 (1Q FY2023) dipped to RM2.65 million from RM27.73 million in the previous corresponding quarter.
Revenue also declined by 8.5 per cent to RM880.45 million from RM962.17 million previously, mainly due to lower customer demand in both the concession and Indonesia segments.
“The higher revenue in the previous year's corresponding quarter was primarily due to a surge in demand following the resumption of normal business operations post pandemic,” it said in a filing with Bursa Malaysia.
However, the group said demand has levelled off in 2023 but Pharmaniaga was able to generate substantial revenue despite the challenging market conditions.
It said Pharmaniaga remains steadfast in its commitment to meeting its obligations to the Health Ministry and continues to negotiate on the logistics and distribution concession agreement, which is expected to be concluded by the end of the interim period on June 30, 2023.
“Our biopharmaceutical facilities are set to produce commercial batches of halal vaccines and insulin by 2025 and these facilities will further solidify Pharmaniaga's global standing as a reputable vaccine and insulin manufacturer, creating fresh sales prospects both locally and internationally,” it said.
Meanwhile, it said Indonesia remains as the key growth driver with sales of medicines valued at about US$7.6 billion in 2020 and expected to expand to US$12.12 billion by 2025 based on Fitch Ratings.
“This encourages the group to further penetrate the Indonesian market and improve its position as a reliable healthcare provider in the region,” it said.
Nevertheless, it said the reclassification to Practice Note 17 (PN17) status as well as the recent 25 basis points increase in the overnight policy rate (OPR) posed a challenge to the group.
“However, we are undeterred and confident that the upcoming regularisation plan will improve our shareholders’ equity and liquidity through prudent debt management and strategic capital allocation,” it said.
It said the group's regularisation efforts will be transformative and able to strengthen its financials.
“Therefore we foresee that the group will complete the implementation of the regularisation plan by the first quarter of 2024,” it added.
— Bernama
