kuala lumpur: Pharmaniaga Bhd’s net profit for the first quarter ended March 31, 2023 (first quarter of fiscal year 2023) decreased to MYR2.65 million from MYR27.73 million in the same period last year.
Sales also fell by 8.5% to MYR880.45 million from MYR962.17 million previously, mainly due to lower customer demand in both the concessions and Indonesia divisions.
“The increase in revenue in the same period last year was mainly due to a surge in demand after the resumption of normal operations after the pandemic,” the company said in a filing with Bursa Malaysia.
However, the group said that although demand would level off in 2023, Farmaniaga was able to generate significant revenue despite the difficult market conditions.
The report said that Farmaniaga remains committed to fulfilling its obligations to the Ministry of Health and continues to negotiate a Logistics and Distribution Concession Agreement, which will be concluded by the end of the interim period on June 30, 2023. said it was.
“Our biopharmaceutical facilities will produce commercial batches of halal vaccines and insulin by 2025, and these facilities will further solidify Farmaniaga’s global position as a reputable manufacturer of vaccines and insulin, It will create new sales prospects at home and abroad.”
Meanwhile, according to Fitch Ratings, Indonesia remains the key growth engine, with pharmaceutical sales reaching approximately US$7.6 billion in 2020 and expected to expand to US$12.12 billion by 2025. said the company.
“This will allow the group to further penetrate the Indonesian market and improve its position as a trusted healthcare provider in the region,” the company said.
Nevertheless, it said reclassification to Practice Note 17 (PN17) status and the recent 25 basis point hike in the overnight policy rate (OPR) were challenges for the group.
“However, we remain undaunted and confident that the forthcoming normalization plan will improve shareholder capital and liquidity through prudent debt management and strategic capital allocation.”
He said the group’s formalization efforts would bring about transformation and strengthen its finances.
“The Group therefore expects to complete the implementation of the normalization plan by the first quarter of 2024,” he added.
— Bernama