Pharmaniaga Posts Stronger Q3 PAT

KUALA LUMPUR, November 21, 2014 – Pharmaniaga Berhad (Pharmaniaga) delivered an exceptional performance for its third quarter ended 30 September 2014, with a profit after tax (PAT) of RM15.0 million. This represents a sizeable jump compared with a PAT of RM4.2 million in the corresponding quarter of the previous financial year. Revenue for the quarter under review increased to RM502.1 million while profit before tax (PBT) rose to RM24.9 million.

For the cumulative nine-month period, the Group registered an even stronger PAT of RM57.6 million, up 62% from RM35.5 million in the same period last year. PBT for the nine-month period grew to RM87.7 million on the back of revenue of RM1.5 billion. This was achieved as a result of strong contributions from operations and continuous improvements in manufacturing, as well as reduced operating expenses.

As a result of the Group’s strong performance and in line with its commitment to delivering shareholder value, the Board of Directors has declared a dividend of 8 sen per share. This brings total dividend to date for the year to 16 sen.

YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Chairman, Pharmaniaga Berhad said, “It has been a tough year, and we are pleased to have delivered strong results during our third quarter and for the nine-month period. The focus is on improving organic growth while taking a more dedicated approach in ensuring that operational costs are contained. This will be our direction for the remainder of the financial year.”

The Logistics and Distribution Division recorded an improved PBT of RM21.2 million for the nine-month period, compared with RM10.7 million in the same period last year. This was primarily due to a higher volume of sales as well as lower provision for doubtful debts.

Meanwhile, the Manufacturing Division delivered a PBT of RM66.5 million compared with RM49.3million in the previous year’s corresponding period. This was largely attributable to improved contributions from operations, as well as an increase in average selling price and higher off-take for in-house products from Government hospitals.

The Group will continue to expand its product portfolio via ongoing Research and Development initiatives. The Group is also poised to widen its global footprint with its flagship manufacturing plant in Indonesia, PT Errita Pharma, coupled with opportunities to collaborate with multi-national companies in the European Union for contract manufacturing projects, which certainly bodes well for the Group’s long-term prospects.

 Forward looking statements

This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of the Group and certain plans and objectives of Pharmaniaga Berhad with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

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