Duopharma Biotech Berhad has reported a 15% higher profit before tax of RM26.65 million in the first quarter of 2022, bolstered by its higher sales to the consumer healthcare and private ethical sectors.
Net profit also rose 15% during the quarter to RM20.29 million, on the back of a 12% increase in revenue totaling RM185.94 million. This resulted in an improved earnings per share of 2.19 sen, compared with 1.90 sen a year ago.
Duopharma Biotech Group Managing Director Leonard Ariff Abdul Shatar said earnings in the upcoming quarters will be buoyed by the RM375 million revised Government tender to supply Insugen-Insulin Recombinant Human Formulations, which was awarded to Duopharma Marketing Sdn. Bhd.
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.
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 that the period for special reinvestment allowance will be extended to the year of assessment 2024.
“We are cautiously optimistic with our outlook this year as the country’s economy is improving following the reopening of borders and with most Covid-19 restrictions having been lifted. Over the longer term, demand for healthcare services is growing and the government’s continuous emphasis on the sector will bode well for the Company,” Leonard Ariff said.
