Pharmaniaga's net profits surges on RM16mil tax benefits

KUALA LUMPUR - Pharmaniaga Bhd's net profit more than tripled in the third quarter of fiscal year 2026, reaching RM26.3 million compared to RM7.3 million a year earlier, thanks to RM16.4 million in tax benefits. Profit before zakat and taxation rose to RM13 million from RM10.4 million, bolstered by RM3.2 million in interest savings from partial repayments on borrowings and ongoing efficiency measures.

The company announced a dividend of 0.32 sen per share for the quarter. For the nine months ending September 2026, Pharmaniaga's net profit climbed 72.1% to RM70.2 million from RM40.8 million, with revenue growing 8.2% to RM3.23 billion from RM2.99 billion, mainly due to higher demand in its concession segment. Profit before taxation expanded 22% to RM77.2 million from RM63.3 million, thanks to RM17.4 million in interest savings from partial debt repayments using regularisation plan funds.

The government's RM47.7 billion 2027 healthcare budget is expected to create a positive environment for the industry. Pharmaniaga is expanding its biopharmaceutical portfolio, having received approval for an Enterovirus 71 vaccine and a generic diabetes product. It plans to launch nine new pharmaceuticals in 2027, targeting cardiovascular, oncology, anti-infectives, and vaccines.

The company also anticipates increasing its Approved Product Purchase List concession from around 850 products to over 1,200 during the concession period. Pharmaniaga is equipping four key warehouses, with full operations expected to begin in the first quarter of 2027.