KUALA LUMPUR (Aug 19): Pharmaceutical company Kotra Industries Bhd (KL:KOTRA) said its net profit declined 4.5% to RM12.49 million for its fourth quarter ended June 30, 2024 (4QFY2024) from RM13.09 million a year earlier, mainly due to higher tax expenses.

Earnings per share fell to 8.42 sen from 8.84 sen, according to the company's bourse filing on Monday.

Kotra said the higher taxes were driven by income tax on business profits and interest income, the reversal of deferred tax assets arising from the utilisation of tax losses and incentives carried forward, and the recognition of deferred tax liability.

Quarterly revenue rose 7.21% to RM59.82 million from RM55.8 million in 4QFY2023, on the back of stronger sales of supplement products in both local and export markets, which offset a decline in pharmaceutical product sales in the local market.

This, the company said, was mainly due to an increase in the sales of supplement products in the local and export markets offset by decrease in sales in the local market for pharmaceutical products.

Kotra declared a second interim dividend of 13 sen per share, amounting to RM19.28 million. The dividend is payable on Oct 10.

For the full financial year, Kotra reported a 31.67% decline in net profit to RM44.6 million, down from RM65.23 million in FY2023. Full-year revenue decreased 6.46% to RM226.55 million from RM242.2 million.

Kotra said the lower earnings were driven by normalisation in demand for medication in the local market following major shortages of various prescription items in the previous year.

Looking ahead, Kotra said it will continue a "vigilant approach, exercising prudence and caution in decision-making" as it enters FY2025.

"The board will proactively monitor and review the group's strategic plans in its quest to create sustainable value for shareholders," it added.

Shares in Kotra Industries closed unchanged at RM4.03 on Monday, valuing the company at RM597.71 million.