PETALING JAYA: Kotra Industries Bhd
could see its short-term core profit fall in tandem with slower revenue growth due to weak demand for over-the-counter (OTC) supplements post-pandemic, says CGS-CIMB Research.
With local OTC supplement sales falling back to pre-Covid-19 levels, the research firm said it has cut its core net profit forecast for Kotra by 15.7% in the forecast financial year ending June 30, 2024 (FY24) and 19.2% in FY25 on lower local revenue growth.
“We expect core profit to fall 12% in forecast FY24 before rising 2% in forecast FY25 and 10% in FY26.
“We expect local pharmaceutical product revenue to rise 3% per annum in FY24-FY26, on the back of rising private healthcare expenditure,” said CGS-CIMB Research.
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