Duopharma Biotech Berhad said it saw a recovery in its quarter-on-quarter sales in the third quarter of the financial year 2023, which ended 30 September 2023 (Q3FY2023) with revenue of RM169.24 million, an increase of 1.03% compared to RM167.52 million in the preceding quarter.
However, PAT was at RM8.97 million down nearly half compared to the RM16.3 million it achieved in 2022, at the same time, the year-to-date revenue in Q3FY2023 of RM537.23 million lagged the corresponding period last year by 1.38%, with the Company’s improved quarterly performance dampened by a decrease in demand from the consumer healthcare sector and the prolonged impact of increased operational costs as well as a one-off loss associated with mutual termination of an agreement to sub-lease in respect of a parcel of vacant leasehold the land exerting pressure on manufacturing margins and impacting overall profitability.
In the first three quarters of 2023, the cumulative PBT stood at RM56.23 million with PAT at RM44.14 million, Duopharma said increased costs include the upward adjustment in electricity tariff, elevated labour cost pursuant to amendments to the Employment Act 1955, higher finance costs due to the rising Overnight Policy Rate (OPR), incremental costs associated with the commencement of production in the new K3 facility, and unfavourable exchange rates.
The company’s contract to supply pharmaceutical and/or non-pharmaceutical products to Government healthcare facilities under APPL 2017-2019 that expired on 30 June 2023 has been further extended for another six months to 31 December 2023.
In Q3FY2023, the Group paid out an interim dividend of 0.5 sen per share (2022: first interim dividend of 0.5 sen per share) equivalent to RM4.81 million (2022:RM 4.76 million) in respect of the financial year ending 31 December 2023. The Board of Directors did not recommend any interim dividend for the current quarter ended 30 September 2023.
