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.