KUALA LUMPUR (May 7): Pharmaniaga Bhd’s (KL:PHARMA) net profit for the first quarter ended March 31, 2025 (1QFY2025) increased 15.3% to RM29.58 million from RM25.65 million a year ago, thanks to higher sales and cost optimisation efforts, which resulted in a 2.5% reduction in operating expenses.
The cost-cutting measures included reduced warehouse rental costs and lower advertising and promotional expenses, the company said in a bourse filing.
Revenue for the quarter rose 9.4% to RM1.06 billion, compared with RM964.96 million in the same period last year. This growth was primarily driven by higher demand in the concession segment, on the back of increased orders from government hospitals and the inclusion of new products in the approved products purchase list (APPL).
For the quarter under review, the group did not declare any dividends.
In terms of prospects, Pharmaniaga said it had achieved a key milestone in its biopharmaceutical segment with the launch of its first flu vaccine in March this year, showing promising early commercial performance as the group prepares to meet anticipated demand in the upcoming vaccination cycle.
Additionally, its entry into the insulin market through a successful product tender marks a strategic expansion of its therapeutic offerings, it said. This is expected to drive sustained growth in the biopharma segment throughout the year.
The group also highlighted that the concession business will remain a key contributor, supported by an expanded APPL, which is expected to boost distribution volumes. Concurrently, efficiency initiatives are being implemented to optimise logistics and warehouse operations, including improvements in inventory forecasting, transportation and warehouse management systems.
For pharmaceutical manufacturing, the group said it had successfully commercialised three products in the first quarter of 2025, with 11 more progressing as scheduled.
As for Indonesia, Pharmaniaga said it will continue to strengthen its logistics network and manufacturing capabilities there, with the renovation of its central warehouse in Bekasi progressing as planned and expected to enhance operational efficiency upon completion by the fourth quarter of 2025.
It has also commenced contract manufacturing activities in Indonesia, with additional projects in the pipeline under contract development and manufacturing organisation arrangements.
The group said it is moving forward with the implementation of its regularisation plan to exit its Practice Note 17 (PN17) status, following shareholders’ approval of resolutions at an extraordinary general meeting on March 20.
With these strategic initiatives, the group remains committed to achieving its growth targets for 2025 and strengthening its market position across core business segments.
Pharmaniaga shares were up half a sen or 2% at 25.5 sen at Wednesday's close, giving it a market capitalisation of RM367.51 million. Year to date, the stock has fallen 28.2%.