PETALING JAYA: Pharmaniaga Bhd saw a net profit of RM2.8 million for the first quarter ended March 31, 2023 (Q1 FY2023) after a harrowing RM644 million loss in the preceding quarter (Q4 FY2022).
However, the pharmaceutical group’s quarterly earnings are far off from what they used to be, down 90.3% from the RM28.8 million in the same quarter last year (Q1 FY2022).
Revenue stood at RM880.5 million, registering a 2.1% increase from the preceding quarter.
However, there is light at the end of the tunnel. Divisions across the board posted profit before tax, with RM8.8 million from the logistics and distribution division, RM1.1 million from manufacturing, and RM1.9 million from its Indonesian division.
“Importantly, the group is on track to conclude the (government) concession renewal by the end of June 30, 2023,” said Pharmaniaga chairman Izaddeen Daud.
“We remain committed to providing uninterrupted logistics and distribution services to our clients, especially the Ministry of Health (MoH), as well as the private sector, underlining our steadfast dedication to healthcare service excellence,” he said.
Emerging from troubled waters?
To say Pharmaniaga has had a difficult time the last few months would be a gross understatement. In that time, it has seen its boardroom shuffled a few times with the resignation and re-appointment of several directors.
On May 9, the group announced that non-executive director Azhar Ahmad, 60, was leaving “to pursue other interests”, effective June 10.
Azhar is the fourth person to leave this year, right in the middle of deepening financial woes that sent it to Practice Note 17 (PN17) status.
Pharmaniaga declared a massive RM644.4 million net loss in Q4 FY2022 arising from its RM552.3 million provision of slow-moving Covid-19 vaccine inventory and a write-down in goodwill of its Indonesian manufacturing cash-generating units of RM50.3 million.
It recorded a net loss of RM607.32 million for the financial year ended Dec 31, 2022 against a net profit of RM172.15 million in the previous year.
Its revenue, meanwhile, slid 27.1% to RM3.51 billion from RM4.82 billion due to a drop in demand for Covid-19 vaccines by the government.
Following its largest ever quarterly net loss, the company announced it had fallen under the PN17 classification for financially distressed companies.
Pharmaniaga is currently controlled by Boustead Holdings Bhd, which holds 52% of its shares.
Boustead’s parent entity Lembaga Tabung Angkatan Tentera (LTAT) also holds an 8.6% direct stake in Pharmaniaga.
At the close of trade, its share price was up 1.33% or 0.5 sen to 38 sen, giving it a market capitalisation of RM497.88 million.