KUALA LUMPUR (May 18): Pharmaniaga Bhd (KL:PHARMA) reported a 6.4% increase in first-quarter net profit to RM31.5 million, driven by stronger demand for in-house manufactured products from government hospitals.

The company reported an interim dividend of 0.25 sen a share for the quarter.

The group saw 11.3% higher revenue of RM1.18 billion for the quarter ended March 31, 2026, compared with RM1.06 billion a year ago on higher volume orders from government hospitals.

In a filing with Bursa Malaysia, the company said growth was mainly supported by its manufacturing division, while the logistics and distribution division saw lower profits due to higher warehouse rental costs and inventory provisions.

Pharmaniaga’s Indonesian business grew in local currency due to higher revenue from existing products, but earnings were reduced in ringgit terms because of foreign exchange losses. 

The group said most receivables are from the government and expected to be collected by year-end. The company posted negative operating cash flow of RM20.8 million during the quarter, due to slower payments from Indonesian government hospitals during the festive season.

Pharmaniaga expects growth from a new human insulin supply in mid-2026, expansion in Indonesia and new product launches including cardiovascular, diabetes drugs and vaccines.

The group’s share price closed down 4% to 24 sen on Monday, valuing the company RM1.57 billion. The stock has fallen 13.79% for the last year.