PHARMA 7081 PHARMANIAGA BERHAD's 2Q net profit slumps 95% to RM722,000, declares 0.5 sen dividend

 PHARMA 7081 PHARMANIAGA BERHAD's 2Q net profit slumps 95% to RM722,000, declares 0.5 sen dividend

KUALA LUMPUR (Aug 19): Pharmaniaga Bhd's net profit for the second quarter ended June 30, 2022 (2QFY22) slumped 94.7% to RM722,000, from RM13.7 million a year earlier, mainly due to lower sales for its non-concession segment, due to the timing of orders from the Ministry of Health (MOH) for products under the tender business.

In a bourse filing on Friday (Aug 19), Pharmaniaga said its revenue for the quarter fell 35.3% to RM761.1 million, from RM1.18 billion a year ago.

Earnings per share fell to 0.06 sen from 1.05 sen.

Pharmaniaga declared a second interim dividend of half a sen per share to be paid on Oct 4, 2022.

For the cumulative six months ended June 30, 2022, Pharmaniaga said its net profit fell 22.8% to RM28.46 million from RM36.84 million a year ago, as revenue fell 12.6% to RM1.72 billion from RM1.97 billion.

On its prospects, Pharmaniaga said the group’s business in Indonesia continued to post an encouraging performance, leveraging the improved operational efficiency through digitalisation as well as aggressive sales efforts.

It said this is a sustainable exercise, with the aim of capitalising on the 280 million population of the country.

On the local front, Pharmaniaga said it is focusing on leveraging its business portfolio in the private market, especially for over-the-counter and ethical products to pharmacies, hospitals and clinics across the country, while concentrating on the extension of its logistics and distribution agreement with the MOH, targeted to be executed in the fourth quarter of 2022.

It said recent shortages of drugs resulted in the government's approval for the release of its medicine stockpile to the private sector, with the group being tasked with managing the release of the medicine.

It said this resulted in a fourfold surge in demand for its generic pharmaceutical products.

The group said it expects the medicine shortage to normalise by the fourth quarter of 2022.

Pharmaniaga said it is cautious in moving forward, taking into consideration various market uncertainties impacting the global economy, such as the rise in raw material prices and increased interest rates.

At the midday break on Friday, Pharmaniaga settled half a sen higher at 65.5 sen, with 406,200 shares done.

http://www.theedgemarkets.com/article/pharmaniagas-2q-net-profit-slumps-95-rm722000-declares-05-sen-dividend