KUALA LUMPUR: Bioalpha Holdings Bhd (BHB) achieved higher revenue of RM24.8 million for the first quarter (Q1) financial year ended 31 March 2021 (FY21), as compared to RM6.5 million in the same quarter last year.
The positive earnings was primarily driven by increased sales in the manufacturing and supply of health food and supplements.
The company's manufacturing division turnover jumped ten-fold to RM21.5 million in Q1, from RM2.0 million in the same quarter last year, mainly attributable to improved domestic performance as well as surge in contribution from China.
In Malaysia, revenue grew by 94 per cent year-on-year (yoy) to RM3.6 million as BHB continued to fulfil demand from new and existing original design manufacturing (ODM) customers, with growing interest for immunity-boosting product range.
Meanwhile, sales to China rose to RM16.6 million for Q1 from nil a year ago.
Of the RM16.6 million turnover from China, RM15.5 million was from the supply of health food ingredients to customers in Guizhou province, China.
Collectively, the manufacturing segment accounted for 87 per cent of the company's 1Q FY21 total revenue.
Meanwhile, BHB's retail pharmacy business recorded a turnover of RM3.3 million in 1Q FY21, against RM4.5 million a year ago, as the the company's Constant Pharmacy outlets received lower foot traffic due to the Movement Control Order (MCO).
The retail pharmacy segment contributed 13 per cent of the total revenue in 1Q FY21.
Operationally, BHB's administrative expenses dropped by 14 per cent yoy or RM600,000 to RM3.7 million during the quarter following implementation of cost reduction and efficiency initiatives across the board.
In tandem with the surge in revenue, coupled with lower operating expenses, BHB swung back to profitability in 1Q FY21, with net profit amounting to RM1.5 million, as compared to net loss of RM5.5 million in 1Q last year.
Managing director William Hon said the company's performance bounced back soundly in 1Q FY21 with healthy recovery in turnover from its manufacturing and supply of heath food and supplements.
"Orders from customers continue to be robust going into 2021, especially for supplements that strengthen immune system.
"For example, our ODM customer, Ritamix, a company listed on the Hong Kong Stock Exchange, is enjoying brisk sales of the immunity-boosting tea that we produce.
"As such, we remain steadfast on fulfilling orders from our ODM clientele and expanding our product pipeline," he said in a statement today.
For BHB's retail pharmacy business, the company expect the operating backdrop to remain challenging with low footfall at the Constant pharmacy outlets given the various phases of lockdown measures implemented.
"Looking ahead, we are cautiously positive on delivering a recovery performance in 2021, underpinned by rebound in domestic manufacturing sales and rising contribution from China," he said.