Pharmaniaga Q2 earnings jump threefold on stronger government, private demand

In the second quarter of 2022, Pharmaniaga Bhd's net profit more than tripled, climbing to RM12.49 million from RM3.96 million a year earlier, according to a filing with Bursa Malaysia. Revenue also increased by 12%, reaching RM1.04 billion from RM926.9 million. The company declared a dividend of 0.48 sen per share, payable on October 13. For the first half of 2022, net profit rose 31% to RM44 million, while revenue grew 12% to RM2.2 billion.

Managing Director Datuk Zulkifli Jafar attributed the strong performance to resilient demand from government hospitals under the approved products purchase list and robust sales in the private sector. He praised the company's disciplined cost management and the performance of its manufacturing division, which was boosted by strong demand for in-house products and the crucial role of its logistics and distribution business in the national healthcare supply chain.

Zulkifli also highlighted the company's progress in localising strategic healthcare products, emphasizing that these initiatives would enhance Malaysia's supply security and support long-term margin enhancement. The vaccine localisation programme had reached significant milestones, including the completion of process validation batches for the pneumococcal conjugate vaccine.

Additionally, Pharmaniaga's manufacturing facilities had been inspected and certified by the National Pharmaceutical Regulatory Agency as compliant with good manufacturing practice requirements. Looking ahead, the company intends to strengthen its operational efficiency, expand its product portfolio, and maintain the resilience of Malaysia's healthcare supply chain in the second half of the year.