KUALA LUMPUR: Pharmaniaga Bhd's first quarter ended Mar 31, 2024 (Q1 2024) net profit increased almost nine-fold to RM25.65 million from RM2.65 million a year ago, on higher sales from government hospitals and it's Indonesia business.
The Practice Note 17 company said revenue for the period rose 9.6 per cent year-on-year (YoY) to RM964.96 million versus RM880.45 million in the same period last year driven by heightened customer demand in both the concession and Indonesia segments.
In a filing with Bursa Malaysia Securities Bhd, the company said the increase in revenue for the concession segment was mainly attributed to a higher volume of orders by government hospitals, the addition of new products to the approved product price list and price adjustments under the new concession cycle due to increased supplier costs.
In the Indonesia segment, revenue growth was due to the surge in demand for products of existing principles and additional sales generated from the opening of two new branches in February 2024.
The logistics and distribution division recorded a higher pre-tax profit of RM28.0 million for the period under review, compared with RM8.8 million in the corresponding quarter of the previous year.
The increase was mainly attributable to higher concession sales. The growth in revenue for the concession segment was primarily due to an increase in the volume of orders from government hospitals, the addition of new products to the approved product price list and price revisions under the new concession cycle resulting from increased supplier costs.
Its manufacturing division reported a pre-tax profit of RM8.8 million, a significant improvement compared with RM1.1 million in the same period last year while its Indonesian division registered a pre-tax profit of RM2.2 million.
Moving forward, the company said it is poised to sustain its momentum into the first quarter of 2024, leveraging the solid groundwork established in 2023 including restructuring of business operations, improved operational capabilities and cost control measures.
"Our commitment to innovation and product portfolio expansion is reflected in our advancing manufacturing endeavours.
The readiness of our manufacturing facilities, including the prefilled syringes (Vaccines) and cartridge (Insulins) facilities, demonstrates our preparedness for upcoming production phases.
"Our insulin project progresses steadily, with dossier submission in February and technology transfer slated for June, aiming for middle of 2025 commercialisation.
"For the vaccine project, the media fill is expected to be completed by September with the initiation of the process validation batch in December.
With these developments, we are well-positioned to meet demand, ensuring sustained growth for Pharmaniaga," it added.