Kuala Lumpur, November 29, 2019 – Duopharma Biotech Berhad (formerly known as CCM Duopharma Biotech Berhad) (“Duopharma Biotech”) unaudited revenue grew 14.52 per cent to RM438.71 million for nine months ended 30 September 2019 (Q3 FY2019), from RM383.09 million in the corresponding period last year, mainly due to the higher demand from private and public health sector.
Meanwhile, the Company’s unaudited profit before tax (PBT) improved significantly by 35.38 per cent as compared to last year’s corresponding period, to RM56.87 million from RM42.01 million, mainly due to higher sales and also lower provision of inventories in the first nine months of 2019.
In comparison with the preceding financial quarter ended 30 June 2019, Duopharma Biotech’s unaudited revenue eased marginally to RM142.86 million from RM145.47 million.
PBT, however, rose 7.93 per cent from RM18.32 million to RM19.77 million due to lower operational expenses during the quarter.
Commenting on the Company’s latest performance, Duopharma Biotech’s Group Managing Director, Leonard Ariff Abdul Shatar said the improved results reflected increased demand for Duopharma Biotech’s pharmaceutical products from the private and public health sectors despite the economic challenges, internationally and domestically.
“The global growth based on the Ministry of Finance’s Economic Outlook 2019 is projected to decline to 3.5% in 2019, as a result of challenging financial conditions, escalating trade threats and risks of a shift towards protectionism as well as geopolitical tension.
“However, despite the economic challenges internationally and domestically, Malaysia’s economy is projected to grow 4.9% in 2019. The recent budget 2019 has seen an increased allocation for health services to RM29 billion, including RM10.8 billion to restore clinics and hospitals as well as purchase of medicine and medical equipment. These opportunities bode well for the Company.
“The recent strengthening of United States Dollar (USD) globally also poses challenges to Duopharma Biotech as it affects our production and other operational costs. It is expected to put pressure on manufacturing margin and hence our profit thereof,” he added.
On 30 August 2019, the Board of Directors had declared a single-tier dividend of 1.0 sen per share for the quarter ended 30 June 2019 and approved that the Dividend Reinvestment Plan will apply to the interim single-tier dividend. The issuance of new Duopharma Biotech Shares, pursuant to the Dividend Reinvestment Plan, was approved by shareholders during the Annual General Meeting on 31 May 2019.
The Company had issued and allotted 4,276,658 new shares pursuant to the application of the Dividend Reinvestment Plan to the said interim single-tier dividend. The aforesaid new Duopharma Biotech Shares were listed and quoted on the Main Market of Bursa Malaysia Securities Berhad with effect from 15 November 2019. Barring any unforeseen circumstances, Duopharma Biotech is expected to achieve satisfactory results in FY 2019. The Directors do not recommend any interim dividend for the current quarter ended 30 September 2019.