Duopharma Biotech records strong growth in Q3 FY2024

Cumulative revenue up to third quarter of FY2024 rose 15.4% year-on-year, with cumulative PBT and PAT across the three quarters rising 11.3% and 7.7% respectively Duopharma Biotech subsidiaries receive another five Letters of Offer to supply Government facilities until 31 December 2026

Kuala Lumpur, November 11, 2024 -- Duopharma Biotech Berhad ("Duopharma Biotech" or "the Company") saw strong growth in the third quarter ended 30 September 2024, with a revenue of RM208.73 million in the quarter, taking the cumulative revenue for FY2024 to date to RM620.02 million. The year-to-date revenue for FY2024 maintained a growth trajectory, up 15.4% from the RM537.23 million recorded in the same period last year. Meanwhile, the cumulative profit before tax (PBT) and profit after tax (PAT) across the three quarters rose 11.3% and 7.7% respectively.

The robust double-digit growth was primarily driven by higher sales across key sectors, particularly the public health segment. The sales performance also offset increased operational costs associated with the newly completed K3 facility and higher finance costs, thus generating growth in PBT and PAT in the period. In the longer term, the Group remains committed to enhancing internal efficiencies and cost-management strategies to mitigate the impact of increasing operational and financial costs.

Leonard Ariff Abdul Shatar, Group Managing Director of Duopharma Biotech Berhad commented, "Our robust financial performance this quarter reaffirms the value of Duopharma Biotech's product portfolio. Looking ahead, we see healthy potential in the 10% increase in allocation for the Ministry of Health announced in the recent Budget 2025, reflecting the Government's strong commitment to funding public healthcare. This will in turn drive continued demand for medical supplies and opportunities for the pharmaceutical industry."

Five new Letters of Offer were received and accepted by two Duopharma Biotech wholly-owned subsidiaries from Pharmaniaga Logistics Sdn Bhd to supply pharmaceutical and non- pharmaceutical products to the Government of Malaysia's facilities until 31 December 2026, with an estimated combined value of approximately RM87.66 million. This adds to the previous eleven Letters of Offer received and accepted by the two subsidiaries in Q2 FY2024, bringing the total value to approximately RM665.76 million, comprising close to 100 products, all to be supplied until 31 December 2026.

In Q3 FY2024, Duopharma Biotech paid an interim dividend of 1.0 sen per share (2023: first interim dividend of 0.5 sen per share) equivalent to RM9.62 million (2023:RM 4.81 million) in respect of financial year ending 31 December 2024. The Directors did not recommend any interim dividend for the current quarter ended 30 September 2024. (2023: Nil)

Maintaining Industry Leadership

Across the past quarter, Duopharma Biotech has continued to be recognised in the industry. At the CSR & Sustainability Malaysia Awards 2024 organised by CSR Malaysia, the Company received the award for Company of the Year (Pharmaceutical Manufacturing) - Best in Community Development and Sustainability Reporting, the second consecutive year it has been recognised at this event. The Company was also recognised by the Minority Shareholder Watch Group (MSWG) at the 2024 National Corporate Governance & Sustainability Awards (NACGSA), with two awards - the Overall Excellence Award (Top 10) where it ranked 4th among 50 companies and with the Industry Excellence Award (Healthcare).

In addition, Duopharma Biotech was also celebrated at the MOPI Pharma Industry Awards 2024 - the inaugural event organised by the Malaysian Organisation of Pharmaceutical Industries (MOPI), where it won two awards, coming in first in the category of Highest Capital Investment (2009- 2023) with a total revenue of over RM100 million and coming in third in the Pharmaceutical category for Most Productive Company 2023 (Revenue per Employee).

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