KUALA LUMPUR: Pharmaniaga Bhd narrowed its losses in the financial year ended Dec 31, 2023 (FY23) to RM77.45 million thanks to lower one-off provisions for slow moving pandemic-related consumable inventories.
The company reported a net loss of RM629.92 million a year ago in FY22.
Pharmaniaga said it booked a RM64.8 million one-off provision for pandemic-related personal protective equipment and needles, and wrote-off RM12.8 million new product development costs due to the non-commercial viability of the products. Additionally, the cessation of non-core and non-performing businesses also resulted in a write-down of machinery equipment (RM12.9 million).
Revenue for the year was down to RM3.4 billion versus RM3.48 billion in FY22, due to a reduction in revenue from concession business as a result of lower budget allocation.
The decrease was offset by the positive contribution from the private market and Indonesia segments countering the decline in the concession business.
For the fourth quarter ended Dec 31, 2023 (Q4 2023), it posted a lower net loss of RM32.72 million versus a net loss of RM644.39 million in the corresponding period a year prior.
Its revenue was lower at RM789.81 million in the quarter under review compared to RM862.72 million in the same period the previous year, down 8.5 per cent, due to 19.6 per cent decrease in sales within the concession business as there was a special budget allocation at the end of 2022 for the purchase of Covid-19 related items by government hospitals.
Nevertheless, the impact was moderated by the improved performance recorded by the Indonesia segment.
In a filing with Bursa Malaysia Malaysia Securities, the company noted it remains dedicated to improving profit margin and cost optimisation to ensure resilience and sustainability.
"Through strategic planning, operational excellence, and continuous innovation, we are committed to overcome any obstacles and position Pharmaniaga for long-term success and growth. "The year is poised for a promising outset, following a comprehensive restructuring of business operations and the implementation of numerous initiatives aimed at revitalising the group in 2023," it said.
Pharmaniaga submitted its regularisation plan to Bursa Malaysia on Feb 23, 2024 to recover and enhance its financial standing, aiming to exit its Practice Note 17 (PN17) status.