Pharmaniaga aims to increase revenue contribution from private sector, says MD

The Edge KUALA LUMPUR (April 4): PHARMANIAGA BHD [] (Pharmaniaga) is looking to increase the revenue contribution from the private sector from the 3% at present, said its managing director, Datuk Farshila Emran.

Farshila said after its AGM on Wednesday that the group was hoping to achieve a target of about 6% to 7% revenue contribution from the private sector for its FY2012, ending Dec 31.

The private sector includes private hospitals and private clinics.

“There are also other private markets which comprise of private hospitals as well as institutional hospitals as well which we are including in the private sector.

There are many in the pipeline and we’re hoping to have growth from the private sector,” she said.

Pharmaniaga recorded a net profit of RM52.8 million, a 74% year-on-year (y-o-y) growth from last year’s net profit of RM30.31 million. This was on the back of a revenue of RM1.52 million recorded for FY2011, 10.14% higher than FY2010’s revenue of RM1.38 million.

Meanwhile, Pharmaniaga chairman Tan Sri Lodin Wok Kamaruddin said the company remains upbeat on its prospects for 2012 on the back of its achievement of a 62% year-on-year increase in profit before tax to RM73 million for the financial year ended Dec 31, 2011 from RM45 million in 2010.

He said the company’s confidence to strengthen its earning potential for 2012 was backed by its substantial growth in revenue of RM1.5 billion in 2011, which was its highest in 5 years.

In a statement issued Wednesday in conjunction with Pharmaniaga’s AGM, Lodin said the first nine months under the Boustead Group had resulted in tangible benefits to their bottom line and they were happy to reward shareholders with a significant 61% payout ratio for the year under review.

“Our shareholders are able to enjoy a 4.7% yield based on the closing price for the financial year,” he said.

He also said that shareholders were also given bonus issue on the basis of one Pharmaniaga bonus share for every 10 shares held.

According to Lodin, several significant operational restructuring programmes at all levels were initiated to improve efficiencies and productivity that resulted in their achievement.

Lodin said he was optimistic about the group’s growth and prospects for the coming year as they were committed in expanding their business locally and internationally by enhancing their capabilities towards strengthening shareholders value.

“We trust the renewal in the Concession Agreement (CA) with the Ministry of Health (MOH) for the supply of pharmaceutical products for a 10-year period will be the catalyst for this growth and allow us to move up the pharmaceutical value chain,” he said.