The Group’s revenue and PBT increased 12.85% and 41.73% respectively for the current period ended 31 March 2019 as compared to RM133.26 million and RM13.26 million for the corresponding period of March 31, 2018. The Group’s revenue and PBT thereof have improved as compared to last year corresponding period mainly due to higher demand from private and public health sector.
Revenue and PBT rose to RM150.39 million and RM18.79 million for the current period ended March 31 2019 as compared to RM115.63 million and RM17.66 million respectively for the preceding financial quarter ended December 31, 2018.
The Group’s revenue grew 30.5% as compared to the preceding period due to higher demand from private and public health. However, PBT did not increase in tandem with the growth in revenue due to the impact from changes in accounting policies arising from the adoption of the Malaysian Financial Reporting Standards (MFRS) in the preceding quarter.
Performance for YTD Period Ended March 31, 2019
Kuala Lumpur, May 20, 2019 – Duopharma Biotech Berhad’s (Duopharma Biotech) (formerly known as CCM Duopharma Biotech Berhad) first quarter Profit before tax (PBT) rose 41.73 per cent to RM18.79 million for the period ending March 31, 2019 from RM13.26 million in the corresponding period ended March 31, 2018 on the back of higher demand from the private and public health sector.
The Group’s revenue jumped 12.85 per cent to RM150.39 million from RM133.26 million in
tandem with improved market demand in the same period.
Comparison with Preceding Quarter
In comparison with the preceding financial quarter ended December 31, 2018, the Group’s revenue and PBT increased 30.05 per cent to RM150.39 million from RM115.63 million and 6.39 per cent to RM18.79 million from 17.66 million respectively.
The Group’s PBT in comparison did not increase in tandem with the growth in revenue due to impact from changes in accounting policies arising from the adoption of Malaysian Financial Reporting Standards (MFRS) in the preceding financial quarter ended December 31, 2018.
Commenting on the Group’s latest performance, Duopharma Biotech’s Group Managing Director, Leonard Ariff Abdul Shatar said the results reflected increased demand from the public and private health sectors and especially spurred on by the Government’s initiative to increase allocation for health services in the 2019 Budget.
“We will sharpen our focus to deepen and widen the introduction of specialty products as one of the Group’s key strategies moving forward to create a pool of niche products,” he added.
The Company recently received registration approval and launched Erysaa, an Erythropoeitin (“EPO”) product. EPO is a protein present in the human body that adjusts red blood cell (“RBC”) generation in tandem with the oxygen requirement of the human body.
Leonard Ariff said the recombinant version of EPO was used as a therapeutic agent to treat anemia patients, acute anemia in kidney dialysis patients, anemia due to anti-cancer chemotherapy and patients requiring blood transfusion.
Based on the Ministry of Finance’s Economic Outlook 2019, the global economic growth is projected to decline to 3.5 per cent in 2019 as a result of the challenging financial conditions, escalating trade threats and risks of a shift towards protectionism, as well as geopolitical tension.
Despite these challenges, internationally and domestically, Malaysia’s economy is projected to grow 4.9 per cent in 2019.
According to Leonard Ariff, the recent increase for health services to RM29 billion in the 2019 Budget, including RM10.8 billion to restore clinics and hospitals as well as purchase of medicine and medical equipment, will present opportunities for the Company.
Duopharma Biotech received the approval of its shareholders for the proposed change of the Company’s name from “CCM Duopharma Biotech Berhad” to “Duopharma Biotech Berhad during a Meeting of Members held on 20th February 2019.
The proposed change of the Company’s name later received the Notice of Change of Company Name issued by the Companies Commission of Malaysia on 25th February 2019.
On 18th February 2019, the Board of Directors of Duopharma Biotech had approved that the Dividend Reinvestment Plan will apply to the Final Single-Tier Dividend of 4 sen per share and will seek the approval of its shareholders for the issuance of new Duopharma Biotech Shares pursuant to the Dividend Reinvestment Plan in the upcoming Annual General Meeting on 31st May 2019.
Barring any unforeseen circumstances, Duopharma Biotech Group is expected to achieve satisfactory results in FY 2019.
The Board of Directors has not recommended any interim dividend for the current financial quarter ended 31st March 2019.