PETALING JAYA: Nova Wellness Group Bhd has missed earnings expectations in the recently concluded quarter as weaker-than-expected sales dragged the pharmaceutical company into a soft patch.
Pointing out that Nova’s core net profit of RM4mil in the first quarter of financial year 2024 (1Q24) was only 20% of its full-year forecast, Kenanga Research also downgraded its sales growth forecast to 8% to 11% for the financial year 2024 (FY24) and FY25.
Previously, it had expected a growth of 15% to 18%. Following the more moderate growth expectations, Kenanga Research cut the net profit assumption by 13% for FY24 and 12% in FY25.
Nova saw weaker-than-expected sales as consumers held back purchases after having overstocked immediately upon the economy reopening.
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