The manufacturer and distributor of pharmaceutical and consumer healthcare products, has registered an 83.2% surge in net profit to RM23.49 million for Q2 FY22, compared to the RM12.82 million in the same period last year.
Revenue for the quarter saw an increase as well, up 14.6% to RM209.25 million from RM182.56 million the year before.
Apex Healthcare’s performance for Q2 FY22 contributed to a strong performance for the first half of the year, posting a 58.9% increase in net profit to RM39.26 million for 1H FY22, up from RM24.7 million in 1H FY21.
Whilst, revenue for the first 6 months of 2022 grew 17.4% to RM425.17 million, compared to RM362.04 million the year before.
The Group attributes its strong financial performance to improved revenue and operating profit from its subsidiaries, driven by growing consumer activity and heightened demand for respiratory medicines in key markets, as well as a significantly higher share of net-of-tax earnings from its associated company Straits Apex Group Sdn Bhd (SAG).
The share of results from SAG for Q2 FY22 was RM7.2 million, a substantial increase over the RM0.7 million recorded in the same period last year as order backlogs were rapidly cleared with the normalization of production output in the second
quarter.
“Apex Healthcare’s strengthened fundamentals and ability to address changing market demands have enabled us to perform well since the start of the pandemic. With COVID-19 sub-variants causing waves globally, we continue to expend great effort in maintaining the integrity of our supply chains. We are particularly grateful for the commitment of our employees and partners as they work tirelessly to meet the heightened demand for medicines,” said Dr Kee Kirk Chin, Chairman and CEO of Apex Healthcare Berhad.
“However, there are gaps yet to be filled in the current market, particularly for certain of our prescription and over-the-counter (OTC) cough and cold medicines. The Group is actively addressing these product shortages in order to increase the availability of these medicines to both healthcare professionals and consumers in the coming months,” he added.
To meet the needs of the market, Apex Healthcare brought forward to Q2Y22 the launch of two new paracetamol products, Palavo 650mg and Palavo Suspension 120mg/5ml.
The Group has also commissioned another blister packaging line in its newest oral solid dosage manufacturing facility (SPP
NOVO), raising its total installed annual production capacity for tablets and capsules by 36%. Moreover, a new high-capacity liquid production line is currently undergoing qualification and scheduled to commence commercial production in Q3Y22, essentially doubling Apex Healthcare’s total installed annual production capacity for liquid medicines such as cough and cold syrups.
“The Malaysian economy is expected to maintain its recovery momentum heading into the second half of 2022, supported by the eventual transition into endemicity, the re-opening of international borders, strong demand from major trading partners, and more. This is expected to support continued demand for pharmaceuticals and consumer healthcare products. However, while we are hopeful that this momentum continues, we are mindful of the risks of a global economic slowdown and recession, particularly due to the impact of the Ukraine-Russia war and China’s steep efforts to contain its recurring COVID-19 outbreaks.”
“Apex Healthcare has and will continue to step up efforts to mitigate all risks, strengthen fundamentals, and be quick to seize growth opportunities when presented. Further unforeseen circumstances aside, we look forward to delivering another satisfactory performance for 2022,” Dr Kee concluded.
Upon its improved financial performance for 1H FY22, Apex Healthcare’s Board of Directors is declaring an interim dividend of 3.0 sen per share. This represents a 20% increase compared to the 2.5 sen interim dividend announced in the same period last year. The interim dividend’s entitlement date is 6th September 2022, and will be paid on 15th September
2022.
