Duopharma Biotech Berhad saw an increase in revenue in the fourth quarter of 2021, recording an 8.5% rise to RM145.44 million, amidst challenges from higher costs.
In the quarter, profit after tax was RM15.72 million, which resulted in earnings per share of 1.67 sen. For the full year, net profit rose 12.07% to RM65.68 million, while revenue rose 12.16% to RM639.18 million. The company has declared a second interim dividend of 1.8 sen per share for the current financial year ended 31 December 2021 (2020: second interim dividend of 6 sen per share) and resolved that the company’s dividend Reinvestment Plan will apply to the second interim dividend. The lower second interim dividend in comparison to the previous year was to allow for more cash in order to fund existing business expansion and also working capital purpose as well as part of the company’s degearing strategy.
Group Managing Director Leonard Ariff Abdul Shatar said several developments will bolster its earnings in the upcoming quarters. This includes an RM375 million tender accepted by the Government for the supply of Insugen-Insulin Recombinant Human Formulations to the Ministry of Health, Malaysia for three years through December 2024. In addition, the contract to supply pharmaceutical and non-pharmaceutical products to government hospitals and clinics has been extended for 12 months until end-2022.
Additionally, the company may also enjoy potential savings of more than RM10 million upon the completion of some qualifying assets by 2024, following the Budget 2022 announcement and the gazette of the Finance Act 2021 that the period for additional reinvestment allowance will be extended to the year of assessment 2024.
“Despite the operational and cost challenges, we are confident of the Company’s long-term prospects as we believe the demand for healthcare and pharmaceutical products will continue to grow. This is evident in the Government’s increased allocation for the healthcare sector in Budget 2022,” Leonard Ariff said.
