KUALA LUMPUR (Nov 15): Generic drug maker Y.S.P. Southeast Asia Holding Bhd (YSPSAH) saw its net profit decline 60% to RM3.94 million in the third quarter ended Sept 30, 2016 (3Q FY16), down from RM9.83 million a year ago, no thanks to lower gross margins, lower unrealised foreign exchange gain and higher operating cost.

In a filing to Bursa Malaysia today, YSPSAH said its revenue remained flat at RM59.19 million in 3QFY16, compared with RM59.31 million a year before.

For the nine months period (9MFY16), YSPSAH’s net profit also fell 31% to RM15.64 million, down from RM22.6 million a year ago. However, the pharmaceutical, healthcare and veterinary products specialist saw its revenue grow 4.7% to RM177.35 million, up from RM169.26 million a year earlier, mainly driven by higher sales achieved from overseas markets and its subsidiary in Vietnam.

Going forward, YSPSAH expects the market outlook for 2016 to remain challenging with persistent foreign exchange volatility.

“Notwithstanding the economic uncertainty, the group remains focused in improving operational efficiency, increasing product registration and embarking on more aggressive marketing, promotional and sales strategies, to facilitate a sustainable performance in the year,” it said.

YSPSAH is 38.9%-owned by Taiwan-listed Yung Shin Global Holding Co Ltd, which is also engaged in the manufacture and distribution of drugs, as well as cosmetics, food products and testing reagents.

In Malaysia, YSPSAH sells its products to clinics, drug stores, pharmacies, Chinese medical halls and private hospitals. The group also exports to Singapore, Myanmar, Thailand, Cambodia, the Philippines, as well as some Middle Eastern and African countries.