Duopharma Biotech Berhad has proposed a one-for-three bonus issue after posting a sterling first quarter ended Mar 31, 2021, with profit before tax climbing to RM23.18 million. This is more than 30 per cent from the RM17.73 million posted in the preceding year corresponding period.
This commendable achievement was made against quarterly revenue of RM166.45 million (2020: RM158.71 million), the company announced to Bursa Malaysia recently.
After accounting for taxation, net profit for the quarter was recorded at RM17.61 million (2020: RM13.56 million), translating to earnings per share (EPS) climbing to 2.49 sen for the quarter, from the 1.98 sen posted previously.
The 1-for-3 proposed bonus issue would entail the issuance of up to 239,926,896 new ordinary shares on an entitlement date to be determined and announced later, and subject to approvals from Bursa Securities, shareholders at a meeting of members to be convened and other relevant authorities.
In the same announcement, the Company also said that, on Feb 22, 2021, the Board of Directors had resolved that the Dividend Reinvestment Plan (“DRP”) approved by shareholders at the Company’s Extraordinary General Meeting on 31 May 2018 would apply to the second interim dividend of 6.0 sen per share amounting to approximately RM42.36 million.
The issue price of the new ordinary shares in the Company to be issued pursuant to the DRP has been fixed at RM3.08 per new Duopharma Biotech Berhad share. The issue price is at a discount of approximately 10 per cent to the 5-day ex-dividend volume weighted average market price (VWAMP) of RM3.42.
The entitlement date for the second interim dividend was on Apr 22, 2021, whilst the payment date was on May 21, 2021. The last day for submission of the Dividend Reinvestment Form was May 10, 2021.
Duopharma Biotech Group Managing Director Leonard Ariff Abdul Shatar attributed the stronger financial performance to improved revenue from higher sales to the consumer healthcare sector during the period.
Profit for the quarter also climbed as compared to the previous corresponding period mainly due to increase in sales during the quarter, coupled with forex losses posted in last year’s corresponding period.
Looking ahead, he expressed optimism that the Company would continue with its strong financial trajectory for the rest of 2021.