KUALA LUMPUR: Pharmaniaga Bhd posted net profit of RM11.94 million for its 4QFY11 ended Dec 31, turning the corner from a net loss of RM2.26 million a year ago. Its revenue for the quarter declined 2.2% to RM367.79 million from RM376.12 million a year ago.

In a filing with Bursa Malaysia yesterday, Pharmaniaga said its revenue for 4QFY11 was lower compared with a year ago because of lower sales to the government sector. It said the difference in net profit from a year ago was because of provisions for a slow-moving stock totalling RM20 million in 4QFY10.

“It has certainly been a momentous year for Pharmaniaga as we underwent a significant internal restructuring to emerge a more efficient entity. Our new management team from our major shareholder Boustead Holdings Bhd took over in the second quarter of the year under review and this has certainly augured well for us as we delivered a strong performance with significant quarter-on-quarter and year-on-year improvements,” said Pharmaniaga chairman Tan Sri Lodin Wok Kamaruddin in a statement yesterday

For FY11 ended December, Pharmaniaga registered a 71.7% increase in net profit to RM52.16 million from RM30.38 million in the previous year, while revenue grew 10.3% to RM1.521 billion from RM1.378 billion previously. Earnings per share (EPS) for FY11 increased to 44.32 sen compared with 25.82 sen recorded in FY10.

The company said the improvement for the year was from the growth of its logistics and distribution division which benefited from higher sales and better margins due to better efficiency and higher deliveries to the government sector.

Pharmaniaga said its logistics and distribution division achieved revenue of RM1.52 billion, a growth of 10.2% over the previous year.

Its concession business recorded sales of RM903.9 million, growth of 11.1%, while its non-concession business to the government sector achieved sales of RM220.9 million, marking 2.5% growth.

Pharmaniaga said its international arm, PT Millennium Pharmacon International TbK (MPI) recorded an increased turnover of 12.1% to RM336.8 million. “The promotional activities undertaken have helped to boost sales to the private and international markets with sales of RM58.4 million, growth of 19.9%,” it said.

For 4QFY11, the company declared a single-tier dividend of 21 sen per share. To date, Pharmaniaga said it has paid dividends totaling nine sen and its total distribution for the year will be RM31.9 million, representing a payout ratio of 61%.

In the statement yesterday, Lodin said its major major shareholder, Boustead Holdings Bhd, has been able to improve the shareholder spread from 2% at the completion of its general offer to 17% currently.

“They are, at present, working to further pare down their stake to meet with the shareholder spread of 25%, with a view to ensure that Malaysian investors have the opportunity of taking part in a solid growth story as Pharmaniaga looks forward to strengthen its earnings potential in the coming financial year,” he said.

This article appeared in The Edge Financial Daily, February 22, 2012.