Pharmaniaga net profit down on concession ops

Published: Saturday August 17, 2013 MYT 12:00:00 AM
Updated: Saturday August 17, 2013 MYT 6:54:56 AM
Pharmaniaga net profit down on concession ops

PETALING JAYA: Pharmaniaga Bhd’s net profit for its second quarter ended June 30 fell 63% to RM5.87mil from RM15.71mil, mainly due to a drop in sales from the concession business.

“Additionally, a provision for doubtful debts and a lower manufacturing profit as a result of a drop in production volume impacted the half-year profit,” the company told Bursa Malaysia.

Revenue in the said quarter, meanwhile, fell to RM437.63mil from RM456.74mil a year earlier.

For the first six months of 2013, Pharmaniaga’s net profit dropped to RM30.64mil from RM44.40mil a year earlier. Revenue, however, increased to RM937.97mil from RM903.48mil previously.

“The rationale for the increase in revenue was from the non-concession business, which included contributions from the Indonesian operations and other factors,” said Pharmaniaga.

On its prospects going forward, Pharmaniaga said the group was looking forward to expanding overseas in line with its long-term strategies.

“With our recently awarded European Union (EU) certification, the Pharmaniaga group is confident of our appeal to multinational companies from the EU, which would now be able to award us with contract manufacturing projects.

“The group is conscious of the challenging economic landscape and remains cautiously optimistic of achieving a satisfactory performance for 2013.”

Pharmaniaga also declared a single-tier second interim dividend of 3.41 sen per share, to be paid on Sept 24.