KUALA LUMPUR (Nov 9): Duopharma Biotech Bhd's third quarter net profit slipped 3.62% to RM16.35 million, from RM16.96 million a year earlier, pressured by higher finance and operating costs.

Earnings per share for the third quarter ended Sept 30, 2022 (3QFY22) dropped to 1.72 sen from 1.8 sen.

Revenue increased 3.05% to RM177.07 million from RM171.84 million, according to the pharmaceutical company's filing.

Duopharma said its bottom line was pressed by finance costs rising 97.7% to RM3.7 million from RM1.87 million in 3QFY21, and operating costs climbing 10.26% to RM47.46 million from RM43.04 million.

Breaking down the company's operating costs, the group said distribution costs climbed 9.58% to RM29.38 million from RM26.81 million, administrative expenses rose 7.74% to RM17.31 million from RM16.1 million, and other operating expenses surged to RM771,000 from RM167,000.

For the cumulative nine months ended Sept 30, 2022 (9MFY22), Duopharma's net profit jumped 5.97% to RM52.95 million from RM49.97 million in the same period last year, helped by higher sales.

Revenue for 9MFY22 increased 10.33% to RM544.76 million from RM493.73 million, which the company attributed to higher demand from the public health sector and the ethical classic market.

In light of the strong demand from the private ethical market and public health sector, Duopharma group managing director Leonard Ariff Abdul Shatar expressed optimism for a satisfactory performance in FY22.

He noted that this is further underpinned by a positive growth momentum in Malaysia's economy following the reopening of international borders, despite manufacturing margin pressure from the strong US dollar.

"The outlook for Duopharma is positive in light of the continuous emphasis placed by the government on the healthcare sector every year.

"We will continue to explore new opportunities to expand our product portfolio in the health and wellness sector as a leading pharmaceutical company in Malaysia, and strengthen our commitment in the halal sector," he said in a separate statement.

Duopharma's share price closed five sen or 3.73% higher at RM1.39 on Wednesday (Nov 9), giving the company a market capitalisation of RM1.32 billion.