PHARMANIAGA CONFIDENT OF EXITING PN17, BACKED BY RESILIENT OPERATIONS AND FORWARD STRATEGIES

KUALA LUMPUR, April 29 (Bernama) -- Pharmaniaga Bhd remains confident of exiting Practice Note 17 (PN17) status, supported by resilient business operations and recovery strategies that have underpinned its steady financial progress.

 In a statement here today, the group said this positive trajectory reflects its strong fundamentals and financial recovery, as shown in the audited financial statements for the year ended Dec 31, 2024 (FY2024), released today.

The auditor made a standard reference to material uncertainty related to going concern, which is common for companies undergoing recovery, but issued an unqualified opinion, reflecting the confidence in the group’s steady progress.

Pharmaniaga's managing director Zulkifli Jafar said that while the group appreciates the auditor’s opinion, it remains confident in its recovery, citing strong operational momentum across its business segments.

“The return to profitability in FY2024, along with the successful approval of our regularisation plan, is clear evidence that we are on the right track. Our strong operational foundation, growing investor interest, and progress in biopharmaceuticals give us every reason for optimism,” he said.

On Monday, Pharmaniaga reported a net profit of RM131.82 million for FY2024, reversing a net loss of RM80.16 million recorded in FY2023. Revenue rose to RM3.75 billion from RM3.40 billion a year earlier. 

In a filing with Bursa Malaysia, the group disclosed that its independent auditors, Messrs Ernst & Young PLT, had issued a statement of material uncertainty related to going concern in their report dated March 26, 2025, in respect to financial statements for FY2024

 “We draw attention to Note 2 in the financial statements, which indicates that the group’s and the company’s current liabilities exceeded their current assets by RM748.8 million and RM827.2 million, respectively, and the group recorded a capital deficiency of RM145.9 million as of Dec 31, 2024.

“These events or conditions, along with other matters set out in Note 2(a), indicate the existence of material uncertainties that may cast significant doubt on the group’s and the company’s ability to continue as a going concern.

“Nevertheless, the financial statements have been prepared on a going concern basis, which is materially dependent on the successful and timely implementation of the proposed regularisation plan and continued support from lenders,” the auditors said.

-- BERNAMA