Pharmaniaga implements robust financial discipline measures for comprehensive recovery plan

KUALA LUMPUR: Pharmaniaga Bhd is putting into effect firm measures by introducing stringent financial discipline strategies throughout its operations and investments, as a key component of the group’s all-encompassing recovery plan.

“Integral to this effort is our measures to clean up the book, strengthen the governance and internal processes to ensure transparency in all business activities.

“Concurrently, the group is embarking on a comprehensive review of its position in every segment the group is in, affirming every challenge is being met head-on and being addressed holistically,” the PN17 company said in a filing with Bursa Malaysia.

It said this will include restructuring non-performing business units, streamlining business activities, as well as optimisation of asset utilisation and manpower optimisation. These initiatives may lead to adverse one-off financial impact in the upcoming quarters.

“It will be challenging and bumpy upcoming quarters for the group, but this strategic move will uphold the group’s business integrity and foster a more agile, efficient, and sustainable operational model.

“The ultimate goal is to present a transparent, realistic, and detailed recovery plan for the group, which will set a clear path for restoring its profitability, maintaining its position in the industry, and ultimately, creating value for shareholders,” Pharmaniaga said.

As part of its financial turnaround strategy, the group is preparing a comprehensive regularisation plan, required by Bursa Malaysia’s main market listing.

The pharmaceutical group said the plan, to be submitted by the third quarter of 2023, will highlight its efforts to regain financial stability and enhance shareholder value.

In the second quarter ended June 30, Phamaniaga’s net profit surged to RM1.96mil from RM722,000 in the same quarter last year.

Revenue for the period rose 11.5% to RM848.7mil against RM761.1mil last year while earnings per share rose to 0.15 sen from 0.06 previously.

For the first six months to June 30, Pharmaniaga posted a net profit of RM4.6mil, down 84% from RM28.4mil last year while revenue expanded marginally to RM1.73bil from RM1.72bil a year prior.