KUALA LUMPUR (Aug 16): Duopharma Biotech Bhd posted a 6% increase in net profit for the second quarter ended June 30, 2022 (2QFY22) to RM16.31 million from RM15.39 million a year earlier, underpinned by a higher revenue.

Earnings per share rose to 1.72 sen from 1.63 sen before.

In a Bursa Malaysia filing on Tuesday (Aug 16), the group said its quarterly revenue jumped by 16.92% to RM181.74 million from RM155.44 million, fuelled by higher sales to the ethical classic market and public health sector during the period.

The group declared a first interim dividend of 0.5 sen per share, to be payable on Sept 14.

For the cumulative six months ended June 30, 2022, net profit rose by 10.9% to RM36.6 million from RM33 million in the same period last year.

Revenue was 14.23% higher at RM367.68 million from RM321.89 million.

On a quarter-on-quarter basis, net profit fell by 19.61% from RM20.29 million registered for the immediate preceding quarter (1QFY22) while revenue slid by 2.26% from RM185.94 million.

Commenting on the group's financial performance, Duopharma Biotech group managing director, Leonard Ariff Abdul Shatar expressed confidence in the company's performance for the remaining months of the year, supported by the positive growth momentum seen in Malaysia's economy following the reopening of international borders, as well as the government's increased budget allocation in the pharmaceutical segment this year.

"Over the longer term, we are always exploring new opportunities to expand our product portfolio in the health and wellness sector to cater to the growing demand for such offerings in an ageing society.

"We are also on the lookout for potential mergers and acquisitions within Asean to increase our overseas earnings," he added.

Duopharma Biotech recently announced a collaboration with foodtech company The Live Green Co from the US to jointly explore the development of plant-based wellness food and pharmaceuticals by substituting ingredients that are animal-based, synthetic or ultra-processed, according to the group.

Shares in Duopharma closed two sen or 1.47% lower at RM1.34, giving it a market capitalisation of RM1.28 billion.