KUALA LUMPUR, Aug 11 — Pharmaniaga Bhd’s net profit for the second quarter ended June 30, 2023 (2Q FY2023) jumped to RM1.96 million from RM722,000 in the same period last year.

In a filing with Bursa Malaysia, the company said revenue also increased 11.5 per cent to RM848.73 million from RM761.10 million previously, attributed to higher sales in both the non-concession segment and operations in Indonesia during 2Q.

Pharmaniaga said that for the first half (1H) of FY2023, its Indonesia division registered a higher profit before zakat and taxation (PBT) of RM5.3 million for the financial period under review, up from RM3.6 million in the corresponding period last year.

"The group’s operational efficiency was further improved through ongoing stock optimisation and aggressive payment collection,” it said.

Meanwhile, Pharmaniaga said the manufacturing division reported a lower PBT of RM3.3 million for 1H FY2023.

"However, the long-term outlook for the group’s manufacturing division remains positive, primarily as a result of the ongoing expansion of the vaccine manufacturing business coupled with sustained demand,” it said.

The company said that the logistics and distribution division’s 1H FY2023 PBT further declined to RM11.5 million from RM27.8 million in the same period last year due to higher operating expenses, mainly driven by increased staff costs and finance costs related to higher borrowings during the financial period under review.

"The group continued to uphold the trust accorded by the Health Ministry by efficiently managing logistics and distribution services to ensure the timely delivery of critical medical supplies to healthcare facilities,” it said.

Moving forward, the group said it had been diligently implementing business recalibration strategies, fostering resilience and adaptability to successfully exit the Practice Note 17 (PN17) status.

"As part of its financial turnaround strategy, the group is preparing a comprehensive Regularisation Plan, required by Bursa Malaysia’s main market listing.

Pharmaniaga said the plan should be submitted by 3Q FY2023, and the completion of this initiative is expected to be finalised by 1Q FY2024.

It said the group would take decisive action by implementing rigorous fiscal discipline initiatives across its operations and investments as part of its comprehensive recovery plan.

"Concurrently, the group is embarking on a comprehensive review of its position in every segment the group is in, affirming every challenge is being met head-on and being addressed holistically.

"This will include restructuring non-performing business units, streamlining business activities, as well as optimisation of asset utilisation and workforce optimisation. These initiatives may lead to adverse one-off financial impact in the upcoming quarters,” it said.

To meet the rising demand within the biopharmaceutical industry, Pharmaniaga said it was on track for its world’s first halal vaccine and insulin manufacturing plants, expected to be completed in 2024 and 2025, respectively.

"Upon production commercialisation, which is set to hit the market by 2025, the group is committed to expanding its reach in the Asean market.

"This expansion is backed by strengthening its product portfolio with a focus on biological drugs,” it added. — Bernama