KUALA LUMPUR (March 11): UMediC Group Bhd's net profit for the second quarter ended Jan 31, 2024 (2QFY2024) fell 14.8% to RM2.48 million, from RM2.91 million a year earlier mainly due to expenses that are not tax-deductible such as professional fees.

In a bourse filing on Monday, the ACE Market-listed medical device distributor and manufacturer said revenue for the quarter rose to RM13.48 million, from RM12.52 million previously.

Earnings per share slipped to 0.66 sen from 0.78 sen.

UMediC did not declare any dividend for the quarter.

For the cumulative six months, the company’s net profit dipped to RM4.37 million from RM4.91 million, on the back of revenue of RM28 million versus RM23.83 million.

Reviewing its performance, UMediC said the increase in the group’s revenue was also contributed by an increase in sales of its manufactured medical consumables, namely HydroX series prefilled humidifiers and AirdroX series inhaler spacers, with a better foreign exchange rate for overseas revenue.

On its prospects, UMediC said the medical device industry in Malaysia is poised for growth and development, bolstered by a conducive environment for manufacturing and a mature healthcare system that is globally recognised.

The company said the Ministry of Health had allocated RM41.2 billion under Budget 2024, which is one of the biggest increases in terms of allocation. This represents a robust 13.5% increase against the previous year’s allocation of RM36.3 billion, and it further demonstrates the government’s stance and resolute emphasis on improving the nation’s quality of healthcare.

“This upward trajectory is expected to significantly boost demand over the medium term providing sustainable growth.

“Along with UMediC's strategic expansion into the laboratory segment through the acquisition of Patho Solutions (M) Sdn Bhd, the group is expected to capitalise on its robust distribution networks and established presence, thereby effectively widening its market reach within the medical industry,” it said.

At the midday break on Monday, UMediC was unchanged at 64.5 sen per share, with 79,800 shares traded.

Note: This article has been updated with correct information.