Duopharma reports slightly higher second quarter earnings

Duopharma Biotech Berhad has posted a creditable set of financial results for the second quarter ended June 30 with profit before tax climbing to RM19.39 million (2019: RM18.32 million) against revenue of RM143.33 million (2019: RM145.47 million).

After accounting for taxation, net profit for the quarter rose to RM14.73 million (2019: RM13.92 million).

Cumulatively for the first six months of 2020, Duopharma Biotech had posted profit before tax of RM37.12 million (2019: RM37.10 million) on the back of RM302.04 million in revenue (2019:  RM295.85 million).

This marginal improvement over last year’s corresponding period is mainly attributable to higher demand from the consumer healthcare sector, the company said in a statement to Bursa Malaysia.

Commenting on the Duopharma Biotech Group’s (“the Group”) steadfast performance, Duopharma Biotech’s Group Managing Director, Leonard Ariff Abdul Shatar noted, “Despite the huge international and domestic uncertainties arising from the Covid-19 pandemic, the solid financial results demonstrate the sustained demand for Duopharma Biotech’s pharmaceutical products from both the private and public health sectors.”

“Although 2020 is proving to be more challenging than previous years, we continue to remain cautiously optimistic of our FY2020 performance,” added Leonard Ariff, reaffirming various contributing factors. “These factors include the recent budget 2020 has seen an increase of 6.6 percent in allocation for healthcare sector to RM30.6 billion, this is the highest ever allocation in Malaysian history.”

He shared that the Company’s new Highly potent Active Pharmaceutical Ingredients (“HAPI”) plant is in full operational mode with the manufacture and supply of its first product, Letrozole (a cancer drug), to both the private market and for government tender. “Concurrently, we are preparing for the technology transfer process to Duopharma Biotech of a second product during August 2020.”

Additionally, he confirmed that Duopharma Biotech had been informed that the contract period for the supply of pharmaceutical and/or non-pharmaceutical products to hospitals, clinics and others under the Malaysian Government have been extended for twenty-five months, commencing Dec 1, 2019 until Dec 31, 2021.

The contract period of the Offtake Agreement Programme for the supply of human insulin formulations has been extended for one year, commencing Dec 2, 2019 until Dec 1, 2020.

“These extensions will help to stabilise a significant portion of the Group’s revenue for the said period. This will also enable the Group to mobilise our resources to intensify our foray into specialty products as one of our strategies moving forward to create a pool of niche products” he said.

“Additional allocations have also been made to the Ministry of Health as a part of its national Covid-19 countermeasures, which further fuels an optimistic outlook since approximately 50% of our sales are to the public sector,” he added.

In line with its prudent stance of conserving cash to ensure the Group’s disciplined commitment to expansion and progress in light of unprecedented uncertainties globally, an interim dividend of 0.5 sen per share has been declared.

 

 

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Jeffrey Cheah Foundation to launch endowment fund

Malaysia’s largest education-focused social enterprise Jeffrey Cheah Foundation, has announced its plan to launch an endowment fund. The endowment fund targets to...

Ferrari Malaysia introduces the SF90 Stradale

Naza Italia, official importer and distributor of the Ferrari brand in Malaysia, has launched the highly anticipated SF90 Stradale, in conjunction with...

MARii signs MoU with Persona to develop human capital development programme

The Malaysia Automotive, Robotics and IoT Institute (MARii) and Persona Energy Sdn. Bhd. (Persona) has inked a Memorandum of Understanding (MoU) to...

Service sectors record 1,316 approved projects with investments of RM28.6 billion.

From January to June 2020, the nation's services sectors recorded 1,316 approved projects with investments of RM28.6 billion. These...

Manufacturing sector attracts largest portion of approved investments for 1H2020

Malaysia recorded a total of RM64.8 billion worth of investments in the manufacturing, services and primary sectors for the first six months...

Must read

Empowering Malaysians to become informed investors one app at a time

With a goal to build 500 applications that focuses on enabling action, Reactive Labs, co-founded by George and Riza, aims to go...

Bigo Live: A growing sensation in an industry with a big appetite

The live-streaming industry has seen a massive growth in years. From the likes of Vimeo to Facebook Live, the industry has grown...

Embed a proper digital literacy lesson in the school curriculum

By Afifah Suhaimi Amidst the drastic growth of internet users this year – with almost one million additions compared...

How to hire talent in a post Covid-19 world

According to the Global Startup Ecosystem Report from Start-up Genome, 72 percent of startups saw an average of 32 percent fall in...