Friday, 14 February 2020

(The Star) Duopharma Biotech net profit up 16% to RM55.27mil

KUALA LUMPUR: Duopharma Biotech Bhd (formerly CCM Duopharma Biotech Bhd) posted net profit of RM55.27mil in the financial year ended Dec 31,2019 and was upbeat on its outlook for its pharmaceutical products due to the extension of contract periods by the government.

In a filing with the exchange, the company said yesterday its net profit had increased by 16% from RM47.64mil in FY18. Its revenue rose by 15.6% to RM576.46mil from RM498.72mil.

In the fourth quarter, its net profit slipped by 16.2% to RM 12.03mil from RM14.37mil. Its revenue increased to RM137.75mil from RM155.63mil. EPS were 1.76 compared with 2.17 sen.

For the fourth quarter, it recommended a final dividend of five sen per share (2018: a final dividend of four sen per share) translating to RM34.22mil (2018: RM26.48mil).

Group managing director Leonard Ariff Abdul Shatar attributed the group’s strong performance to higher demand for the group’s pharmaceutical products from both the private and public health sectors.

“The group’s net profit also improved significantly due to higher sales and also lower provision of inventories in FY 2019, ” he said.

He said barring any unforeseen circumstances, the group was expected to achieve a satisfactory set of results in FY2020.

“The recent budget 2020 has seen an increase of 6.6% in allocation for healthcare sector to RM30.6bil, ” Leonard said, adding this was the highest ever allocation in Malaysian history.

He also shared the Duopharma Biotech group has also been recently 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 25 months, starting Dec 1,2019 until end-December 2021.

“The extension augurs well for the group as it stabilises 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.

He believed that the Malaysian economic outlook was expected to remain resilient with domestic demand anchoring growth, despite the prolonged trade dispute between major economies, geopolitical tensions as well as volatility in theglobal financial and commodity markets.

However, the Covid-19 outbreak may result in disruption in global supply chain and may create uncertainties in the market which may dampen the global economic outlook.