Despite higher costs, Duopharma Biotech Berhad (Duopharma Biotech) saw its revenue in the fourth quarter of 2021, rising by 8.5 per cent to RM145.44 million.
In the quarter, profit after tax was RM15.72 million, resulting in earnings per share of 1.67 sen.
For the full year, net profit rose 12.07 per cent to RM65.68 million, while revenue increased 12.16 per cent to RM639.18 million.
Duopharma Biotech has declared a second interim dividend of 1.8 sen per share for the fiscal year ending Dec 31, 2021 (2020: second interim dividend of six sen per share) and resolved that the company’s Dividend Reinvestment Plan will apply to the second interim dividend.
Compared to the previous year, the second interim dividend was reduced to free up more cash for existing business expansion and working capital purposes as part of the company’s de-gearing strategy.
According to Duopharma Biotech Group Managing Director Leonard Ariff Abdul Shatar, several developments will boost the company’s earnings in the coming quarters. This includes a RM375 million tender accepted by the Government to supply Insugen-Insulin Recombinant Human Formulations to the Ministry of Health (MoH) 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 the end of end-2022.
Following the announcement in Budget 2022 and the gazette of the Finance Act 2021 that the period for additional reinvestment allowance will be extended to the year of assessment 2024, the company could save more than RM10 million upon the completion of some qualifying assets by 2024.
“Despite the operational and cost challenges, we are confident of the company’s long-term prospects as we believe the 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,” Leonard Ariff said.