Update Pharmaniaga 1Q profit up 6% at RM26m, pays 4 sen dividend

by **Cals** Wed 14 May 2014, 17:36

Update Pharmaniaga 1Q profit up 6% at RM26m, pays 4 sen dividend

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Wednesday, 14 May 2014 14:09

KUALA LUMPUR (May 14): Pharmaniaga Bhd's net profit rose 6% to RM26.2 million in the first quarter ended March 31, 2014 from RM24.8 million a year earlier. Profit growth came on lower debt provision and finance cost.

In a statement to the exchange today, Pharmaniaga said revenue, however, fell to RM468.7 million from RM500.3 million.

"This (higher profit before tax) was mainly a result of reduced operating expenses,including provision for doubtful debts," it said.

Pharmaniaga said revenue fell on less demand from concession and non-concession buyers. The company said it registered "lower off-take from government hospitals in the quarter under review."

The firm said it planned to pay its first interim single-tier dividend of four sen a share.

Looking ahead, Pharmaniaga said its logistics and distribution unit was set to generate steady revenue stream while maintaining cost optimisation to sustain earnings growth.

At its manufacturing unit, Pharmaniaga said it was focused on its research and development to improve its product range. Pharmaniaga's overseas ventures will also be closely watched.

"Meanwhile, the group’s plans to enhance its international presence are on track. Via its European Union (EU) certified plant, the group aims to seek out collaborations with multinational companies in the EU region for contract manufacturing projects.

"A recently-acquired manufacturing plant in Indonesia is also expected to have a positive impact as the group strives to expand its earnings base and pursue viable opportunities for growth," Pharmaniaga said.