KUALA LUMPUR: Pharmaniaga Bhd saw a 12% rise in first quarter (1Q) net profit thanks to stronger demand from government and private hospitals in both Malaysia and Indonesia.

Net profit for the quarter ended March 31, 2019 rose to RM19.62 million from RM17.59 million a year earlier, as revenue increased 27% to RM786.11 million from RM617.92 million.

In a filing yesterday, the pharmaceutical company said despite increased marketing and promotional expenses as well as higher finance costs, the group recorded a profit before tax (PBT) of RM30 million, a growth of 5.4% compared with the same quarter last year.

It added that its Indonesia division marked a turnaround, registering a PBT of RM400,000, an improvement compared to a deficit a year ago.

“This was mainly attributable to increased demand from government and private hospitals as well as ongoing cost optimisation measures,” it said. The group declared a first interim dividend of six sen, payable on June 27.

Looking ahead, Pharmaniaga said prospects remain bright as it continues to build on its concession and non-concession business.

“In particular, the group aims to heighten its market presence in the private sector via strategic marketing initiatives.

“Research and development efforts remain as key drivers as the group expands its product portfolio.

“The group is also focused on strengthening its Indonesian operations to tap into the immense potential of this market,” it said.