KUALA LUMPUR (Aug 21): Pharmaniaga Bhd's (KL:PHARMA) net profit improved 42.6% for the second quarter ended June 30, 2024 (2QFY2024), from RM1.96 million a year earlier, as it recorded tax refunds and lower operating costs to offset weaker revenue and higher finance costs.

Net profit in the quarter came in at RM2.79 million or 0.19 sen per share, up from RM1.96 million or 0.15 sen per share, its filing showed.

Quarterly revenue fell 1.2% to RM838.26 million from RM848.73 million a year ago, on weaker non-concession segment, offset by increased demand in Indonesia.

The group did not announce any dividend for the quarter.

In the quarter, operating expenses fell 15.76% to RM63.98 million from RM75.94 million. Finance costs however grew 18% to RM18.19 million, from RM15.38 million.

For the first six months ended June 30, 2024 (1HFY2024), the group posted a 4.3% increase in revenue to RM1.8 billion from RM1.73 billion a year ago.

1HFY2024 net profit jumped more than five times to RM28.44 million or 1.97 sen per share, from RM4.61 million or 0.35 sen per share, thanks to cost optimisation measures.

These include cessation of non-core and non-performing businesses as well as lower advertising and promotional expenses.

The logistics and distribution division recorded a higher segmental profit of RM26.2 million in 1HFY2024 from RM11.5 million a year ago, mainly due to higher concession sales coupled with cost optimisation measures.

The manufacturing division reported a segmental profit of RM11.4 million versus RM3.3 million a year earlier. The group said outlook for the division remains positive with ongoing expansion of the vaccine manufacturing business coupled with sustained demand.

The Indonesia division, meanwhile, posted higher earnings before interest, taxes, depreciation, and amortization (Ebitda) of RM19.8 million versus RM17.7 million last year, driven by higher sales generated.

In terms of prospects, Pharmaniaga said it achieved an important milestone with the completion of the pre-filled syringe (PFS) and cartridge line at its vaccine and insulin production facility

“The production line is currently undergoing process simulation, known as Media Fill, which validates and verifies the sterility of the production environment — a crucial step before the manufacturing of process validation (PV) batches which are scheduled between September and December 2024,” it added.

In the area of vaccine product readiness, the group said the PCV13 and Hexavalent vaccines are on track to receive registration approvals by 2Q2026 and 4Q2027, respectively.

Shares in Pharmaniaga closed up half a sen or 1.17% to 43 sen, giving the group market capitalisation of RM619.73 million. The counter is up 11.69% this year.