Pharmaniaga profit after zakat and tax surges almost tenfold to RM26.2m

PETALING JAYA: Pharmaniaga Bhd today reported a strong performance in its first quarter ended March 31, 2024 (Q1’24) with profit after zakat and taxation (PAT) surging almost tenfold to RM26.2 million, up from RM2.8 million in the corresponding quarter last year, signalling a robust financial recovery.

For the quarter under review, Pharmaniaga’s earnings before interest, taxation, depreciation and amortisation (Ebitda) doubled to RM66.5 million from RM32.5 million a year ago. This growth was largely fuelled by increased customer demand experienced by the group’s logistics and distribution division and the Indonesia division.

The logistics and distribution division recorded a higher PAT of RM18.9 million, an increase from RM5.2 million during the corresponding quarter. This was attributed to the higher revenue from the concession business due to new products introduced to the Ministry of Health’s approved product purchase list, coupled with price revisions under the new concession agreement.

The manufacturing division on the other hand displayed substantial improvement, registering PAT RM6.2 million, up from RM0.2 million in the same quarter last year. This growth was driven by new tenders awarded by MoH and increased demand, together with enhanced manufacturing efficiency and cost containment measures.

Meanwhile the Indonesia division registered PAT RM1.1 million, a noteworthy improvement from its PAT RM0.02 million during the corresponding quarter last year. This was propelled by the surge in demand for products of existing principals, as well as additional sales generated from two new distribution branches which commenced operations in February this year.

This significant performance underscores the group’s recovery trajectory and resilience amid a challenging economic landscape, driven by improved operational capabilities and cost control measures.

Pharmaniaga executive director Zulkifli Jafar said, “Despite being in the PN17 status, the group continues to be resilient and was able to deliver such notable Q1 FY2024 results. Anchored by this performance, Pharmaniaga is poised for a promising outset in 2024, following a comprehensive restructuring of business operations and implementation of numerous strategies and initiatives under the group’s strategic plan of Vision 525.”

He added that the group submitted its regularisation plan to Bursa Malaysia on Feb 23, which marks a significant milestone for Pharmaniaga as it remains focused to exit from PN17 status, as well as improving profit margins and practising cost optimisation measures to ensure resilience and sustainable business growth, as part of its Vision 525.

“Our Indonesia division experienced revenue growth, mainly attributed to the opening of the two new distribution branches, each at Purwakarta and Mataram, totalling 35 branches in the country, which has undoubtedly further widened our distribution network. These achievements validate our efforts in line with the Vision 525,” he said.

Commenting on the encouraging results, Pharmaniaga chairman Izaddeen Daud said, “Our commitment to fiscal discipline fuels our focus on efficiency, cost optimisation, margin, and revenue growth. Through strategic initiatives, we are solidifying our foundation for long-term success, ensuring resilience and adaptability in the evolving pharmaceutical industry.”

Pharmaniaga’s goal of recovery and resurgence is anchored by Vision 525, which was introduced in 2023 to ensure that the group is back on track by 2025. Vision 525 is reinforced by five strategic pillars – strengthening public sector business; building biopharmaceutical capability; optimising cost aggressively; growing the private market; and reinventing Indonesia market.