• Higher demand from private sectors fuels improved revenue figures
  • Group MD remains cautiously optimistic of FY2020 financial performance

KUALA LUMPUR, 18 May 2020 – In an announcement to Bursa Malaysia this evening, Duopharma Biotech Berhad (“Duopharma Biotech” or the “Company”) announced a robust set of results for Q1 2020 with revenue rising to RM158.71 million (Q1 2019: RM150.39million).

Profit before taxation, in turn, came in at RM17.73 million for the quarter, marginally lower from the RM18.79 million posted in the previous corresponding period due to the strengthening of the United States Dollar against the Malaysian Ringgit, resulting in unrealised forex losses on borrowings in USD in the Group’s loan portfolio.

Duopharma Biotech’s Group Managing Director, Leonard Ariff Abdul Shatar, attributed the Group’s robust performance to higher demand for the Group’s pharmaceutical products from the private health sector. 

Similar to the corresponding quarter in 2019, Duopharma Biotech’s Board of Directors has not recommended any interim dividend for the quarter. 

On 13 February 2020, the Board of Directors had approved that the Dividend Reinvestment Plan (DRP) will apply to the Final Single-Tier Dividend of 5.0 sen per share, if the dividend is approved by the shareholders at the Company’s upcoming Annual General Meeting on 17 June 2020.  The Company will also seek the approval of its shareholders for the issuance of new Duopharma Biotech Shares pursuant to the DRP in the Annual General Meeting. 

“We foresee that 2020 to be more challenging than previous years. However, barring any unforeseen circumstances, we remain cautiously optimistic of our FY2020 financial performance” said Leonard Ariff. 

“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 said, adding: “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.” 

Leonard Ariff also shared that the Duopharma Biotech Group has been informed that contract periods 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 1 December 2019 until 31 December 2021. In addition, the contract period of the Off-Take Agreement for the supply of human insulin formulations has been extended for one (1) year, commencing 2 December 2019 until 1 December 2020.

“These extensions augur well for the Group as they stabilise a significant portion of the Group’s revenue for the said period. What’s more, it enables 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.