- Strong fundamentals enable the Company to maintain YTD revenue growth YoY in period presenting multiple challenges to the industry
- Interim dividend of 0.5 sen per share amounting to approximately RM4.81 million declared for period ended 30 June 2023
KUALA LUMPUR, 24 AUGUST 2023 – Duopharma Biotech Berhad (“Duopharma Biotech” or “the Company”) maintained its revenue growth trajectory in the six months period ended 30 June 2023 (Q2FY2023) with Year-to-Date (YTD) FY2023 revenue of RM367.99 million, a marginal growth of 0.08% compared to the same period last year, during a half-year hit by multiple industry-wide challenges gradually building since early 2023. At the same time, YTD Profit Before Tax (PBT) for FY2023 stood at RM44.81 million, compared to RM48.12 million last year, while Q2FY2023 saw revenue and PBT of RM167.52 million and RM16.52 million respectively, as compared to RM181.74 million and RM21.47 million respectively in the corresponding quarter last year, displaying less favourable results when contrasted with the financial performance in corresponding quarter last year.
For the period ended 30 June 2023, the Company saw year-on-year sales growth in the private prescription pharmaceutical market, ethical specialty sector and export segment, while the consumer healthcare sector saw lower demand, resulting in only a marginal increase in the Group’s overall revenue compared to the same period in the previous year. Concurrently within the period, there were increased operational costs resulting from the upward adjustment in electricity tariff, elevated labour cost pursuant to the amendments to the Employment Act 1955, higher finance costs due to the rising Overnight Policy Rate (OPR), once-off costs incurred due to temporary shutdown of the small volume injectable plant for upgrading and maintenance, and incremental costs associated with commencement of production in the new K3 facility, which caused the undesirables to the overall financial performance in Q2 2023 and 1H FY 2023.
Duopharma Biotech Group Managing Director Leonard Ariff Abdul Shatar said, “Duopharma Biotech’s strong fundamentals, diverse portfolio and focus on innovation has enabled us to maintain revenue growth despite being in a time that challenged the entire industry with higher operating costs. Notwithstanding the factors such as lower demand in the consumer healthcare segment, the multiple industry challenges and the fluctuating foreign exchange costs that were expected to persist, we are prepared for a situation where recovery in the industry may take some time. In this period, we remain committed to strengthening our core focus that has enabled our success, including diversifying into high-value biologicals and niche products, expanding our range of Ethical and Consumer Healthcare (CHC) product portfolios, enhancing our presence in the ASEAN region and upgrading our manufacturing facilities into world-class assets.”
For Q2FY2023, the Board of Directors resolved that an interim dividend of 0.5 sen per ordinary share tax exempted under the single-tier system amounting to approximately RM4.810 million (2022: an interim dividend of 0.5 sen per share equivalent to approximately RM4.762 million) would be paid, whereby the Dividend Reinvestment Plan would not apply to the interim dividend. Duopharma Biotech reinforced its regional presence in Q2FY2023 with the official launch of its new regional office in German Centre, Singapore, strengthening its commitment to the Singaporean market.
The Company established an Islamic medium term notes programme for the issuance of Islamic medium-term notes (“Sukuk Wakalah”) of up to RM2.0 billion in nominal value based on the Shariah principle of Wakalah Bi Al-Istithmar (“Sukuk Wakalah Programme”) and lodged the Sukuk Wakalah Programme with the Securities Commission Malaysia (“SC”) on 24 August 2023 (“Lodgement Date”). The Sukuk Wakalah Programme has a 30-year programme tenure, whereby the first issuance must be made within ninety (90) business days from the Lodgement Date or such other period as specified by the SC.