KUALA LUMPUR: Pharmaniaga Bhd's pre-tax profit for the second quarter ended June 30, 2013 fell to RM9.61 million from RM27.62 million recorded in the same quarter a year ago.

Revenue slipped to RM437.63 million, during the period under review, from RM456.74 million registered previously.

In a filing to Bursa Malaysia, Pharmaniaga said the decrease was due to a slowdown in orders from the concession business, recognition of doubtful debts and increased provision for obsolete stocks.

Chairman Tan Sri Lodin Wok Kamaruddin said the drop in sales from the concession business had impacted earnings for the half-year period.

"We are confident that despite this setback in earnings, we will be able to improve our prospects for the remaining quarters of this financial year.

"It boils down to strengthening efficiencies and managing our inventories and production levels in order to ensure that our bottom-line remains strong," he said in a statement.

Pharmaniaga expected its performance to improve as it was positive of its Indonesian operations.

With its recent joint venture agreement with Modern Healthcare Solutions Company Ltd in Saudi Arabia, it will capitalise on building its business prospects in the Middle East and North Africa region. -- BERNAMA