Petaling Jaya: Farmaniaga Bhd has embarked on major restructuring activities, including the implementation of stringent financial discipline initiatives across its operations, as part of the Group’s comprehensive turnaround plan.
Izadine Dowd, Chairman of Farmaniaga, acknowledged the need to revamp the group’s business strategy, stating: “This initiative includes cleansing the books, strengthening governance and internal processes to ensure transparency in all business activities. It is imperative that we take steps to ensure that.”
He said that the Group is undertaking a comprehensive review of its position in all business segments, and will tackle all issues head-on, such as reorganizing unprofitable business units, streamlining business activities, and optimizing human resources. He added that he confirmed that they were working holistically. Asset utilization.
“These initiatives may have a temporary adverse financial impact in the coming quarters. It will be a difficult and challenging time for us, but this strategic move will ensure our business integrity. will be maintained and promote a more agile, efficient and sustainable operating model.The ultimate goal is to present a transparent, realistic and detailed turnaround plan for the Group, which will It provides a clear path to restore profitability, maintain industry position and ultimately create value for our shareholders,” he said.
Despite the current financial challenges, Pharmaniaga continued to demonstrate resilience in the second quarter of the fiscal year ending June 30, 2023 (Q2 2023), recording improved financial results. The improvement was primarily driven by non-concession sales and increased operations in Indonesia.
The group reported revenue of RM848.7 million in the second quarter of 2023, up 11.5% from RM761.1 million in the same period last year. The better results demonstrate the effectiveness of the Group’s market penetration strategy, efficient cost control and expansion efforts.
Profit before tax and Zakat profit for the quarter was MYR 6.3 million, up 40.3% from MYR 4.5 million in Q2 2022. After-tax and after-zakat profit for the quarter was RM2.3 million, up 154% from his RM900,000 in the same period last year. This result demonstrates the Group’s tenacity in addressing the significant challenges of managing financial costs.
Farmaniaga’s non-concession division proved to be a key growth driver, recording sales of RM333.2 million, up 27% from RM262.7 million in the same period last year.
Izaddeen said: “We are actively working to resolve the reclassification to Practice Note 17 and are on track to submit normalization plans by the third quarter of fiscal year 2023. Renewal of the concession agreement with the ministry is also well underway: we have received the award letter and are currently in the final stages of this process and expect to sign the concession agreement by the third quarter of 2023.”
