Update Pharmaniaga 2Q profit soars 172% on year, pays 4 sen dividend

by **Cals** Fri 22 Aug 2014, 01:23

Update Pharmaniaga 2Q profit soars 172% on year, pays 4 sen dividend

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Thursday, 21 August 2014 13:24

KUALA LUMPUR (Aug 21): Pharmaniaga Bhd's net profit soared 172% to RM15.98 million in the second quarter ended June 30, 2014 from RM5.87 million a year earlier.

In a statement to the exchange today, pharmaceutical product manufacturer Pharmaniaga, a 56.44% subsidiary of Boustead Holdings Bhd, said net profit had risen on "favourable contributions from both concession and non-concession businesses."

Pharmaniaga said revenue climbed to RM525.07 million from RM437.63 million. The company plans to pay its second interim dividend of four sen a share during the quarter.

Cumulative first half net profit increased to RM42.19 million from RM30.64 million a year earlier. Revenue was higher at RM993.74 million compared to RM30.64 million.

"Moving forward, the group’s outlook continues to be positive, with the global economy showing moderate but sustained expansion and the pharmaceutical sector in Malaysia showing improved prospects.

"The group’s logistics and distribution division is expected to continue generating a stable income while focusing on cost optimisation measures to maintain sustained earnings," Pharmaniaga said.

On its manufacturing unit, Pharmaniaga said it would expand its product range via research and development.

Pharmaniaga said its manufacturing division would benefit from collaboration with multinational companies in the European Union (EU) via Pharmaniaga's EU-certified plant.

"The group expects the recently acquired manufacturing plant in Indonesia to contribute positively towards its long term earnings, as it concentrates on exploring new viable business opportunities to broaden its earnings base as well as sustain profitability in the financial year ending 31 December 2014," Pharmaniaga said.