KUALA LUMPUR (Feb 15): Duopharma Biotech Bhd’s net profit for the fourth quarter ended Dec 31, 2021 (4QFY21) slipped 2.94% to RM15.72 million from RM16.19 million a year ago because of higher costs.

Earnings per share amounted to 1.67 sen from 1.72 sen a year earlier, according to the pharmaceutical group’s filing with Bursa Malaysia on Tuesday (Feb 15).

However, revenue rose 8.47% to RM145.44 million from RM134.09 million a year ago.

The group has declared a second interim dividend of 1.8 sen per share; shareholders may elect to reinvest their dividend in new shares.

Compared to the immediate preceding quarter, Duopharma’s net profit slipped 7.35% from RM16.96 million in 3QFY21 mainly due to lower sales and higher expenditure in the reporting quarter.

Quarterly revenue fell 15.36% from RM171.84 million in 3QFY21 on lower demand from the private ethical sector and public health sector as sales gradually tapered off in the final quarter of the calendar year.  

For the full financial year ended Dec 31 (FY21), the group’s net profit increased 12.07% to RM65.68 million from RM58.61 million in the year prior, on higher sales throughout FY21 as compared to FY20.

Likewise, full-year revenue rose 12.16% to RM639.18 million against RM569.9 million mainly due to higher sales to the consumer healthcare and public health sector.

Moving forward, Duopharma group managing director Leonard Ariff Abdul Shatar said that despite operational and cost challenges, the group is confident of its long-term prospects as it believes that demand for healthcare and pharmaceutical products will continue to grow.

“This is evident in the government’s increased allocation for the healthcare sector in Budget 2022,” he said in a statement, adding that several developments are set to bolster the group’s earnings in the upcoming quarters.

“This includes a RM375 million tender accepted by the government for the supply of Insugen-Insulin Recombinant Human Formulations to the Ministry of Health, Malaysia for three years through December 2024.

“In addition, the contract to supply pharmaceutical and non-pharmaceutical products to government hospitals and clinics has been extended for 12 months until end-2022.

“The company may also enjoy potential savings of more than RM10 million upon the completion of some qualifying assets by 2024, following the Budget 2022 announcement and the gazette of the Finance Act 2021 that the period for the additional reinvestment allowance will be extended to the year of assessment 2024,” he elaborated.