Update Pharmaniaga returns to black with 4Q net profit at RM21m, declares 6.2 sen dividend

by **Cals** Tue 25 Feb 2014, 01:37

Update Pharmaniaga returns to black with 4Q net profit at RM21m, declares 6.2 sen dividend

Business & Markets 2014

Written by Kamarul Anwar of theedgemalaysia.com

Monday, 24 February 2014 14:46

KUALA LUMPUR (Feb 24): Pharmaniaga Bhd posted a net profit of RM20.81 million in its fourth quarter ended December 31, 2013 (4QFY13) against the previous corresponding quarter’s net loss of RM7.93 million.

In a filing to Bursa Malaysia, the pharmaceutical products manufacturer reported a 17.71% increase in revenue to RM567.86 million from RM482.4 million.

Pharmaniaga said the rise in 4QFY13 revenue was due to higher demand from both concession and non-concession businesses.

Pharmaniaga, which is 56.44%-owned by Boustead Holdings Bhd, declared a fourth interim dividend of 6.2 sen a share. This brings Pharmaniaga's total dividends in FY13 to 16.02 sen.

This compares with the 15.92 sen a share a year earlier.

Pharmaniaga's full-year net profit shrank to RM55.2 million from RM61.71 million a year earlier.

Revenue however rose to RM1.95 billion compared to RM1.81 billion. The company said this was due “to stronger contributions from non-concession business with new tenders awarded during the year as well as an organic growth for concession business.”

In a separate statement, Pharmaniaga’s chairman Tan Sri Lodin Wok Kamaruddin commented that the group was optimistic on its outlook despite the dip FY13 bottom line.

“Despite the fact that our full-year results saw a dip, we are optimistic that the year ahead will see the group moving forward. As we strengthen our concession and non-concession businesses in Malaysia, we expect that the ongoing robust demand will support our growth, particularly in the private sector where there is much potential to expand.

“We have also taken steps towards increasing our presence in international markets. The acquisition of our first manufacturing plant in Indonesia, PT Errita Pharma, will supplement our existing distribution arm in the country and we are confident this will contribute to the group’s long-term revenue," Lodin said.

He also said the European Union certification for Pharmaniaga's small-volume injectable manufacturing plant would enable the firm to accept contract manufacturing projects from multinational companies in the European market.

At 12.30pm, Pharmaniaga shares fell one sen or 0.23% to RM4.29. The stock was traded flat at RM4.30 at 2.44pm.