This article first appeared in The Edge Malaysia Weekly on December 2, 2024 - December 8, 2024

Last week, Pharmaniaga Bhd (KL:PHARMA) announced that it had returned to profitability, registering a net profit of RM101.03 million for the third quarter ended Sept 30, 2024 (3QFY2024), against a net loss of RM49.34 million a year ago. This was on the back of better sales and the reversal of penalty charges from the government.

The company did not provide, however, details of the penalty imposed by the government previously. Without the reversal of penalty charges, what would its core profit be?

As a public-listed company, Pharmaniaga should furnish the regulator with more information, such as the penalty amount, when the charges were imposed and reasons for it.

There has been an improvement in the company’s financials, with net earnings recorded for the three consecutive quarters. For the first nine months of the year, it reported a net profit of RM129.48 million versus a net loss of RM44.73 million over the same period last year.

And finally, last Friday, it received approval from Bursa Malaysia for its regularisation plan to exit Practice Note 17 (PN 17) status. The regularisation plan comprises a RM520 million capital reduction, a rights issue to raise up to RM353.52 million and a RM300 million private placement.

Now on a more solid footing, the group should ensure that its future filings and financial statements to the stock exchange contain more comprehensive details so that the investing community can make more informed decisions.

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