Duopharma's 1Q net profit falls 32.5% to RM15.3mil

KUALA LUMPUR: Duopharma Biotech Bhd foresees challenges from a strong US dollar, high electricity tariffs, and interest rates impacting manufacturing margins and overall profitability, says group managing director Leonard Ariff Abdul Shatar.

“However, the group remains focused on enhancing operational efficiencies internally to cushion the surge in operational and finance costs caused by these challenges,” Leonard said in a statement.

Duopharma’s net profit fell 32.5% to RM15.3mil, or earnings per share of 1.59 sen in the first quarter ended March 31 compared with RM22.6mil, or 2.38 sen posted in the same quarter last year. Revenue dipped to RM192.9mil versus RM200.5mil.

“The marginally lower year-on-year revenue and pretax profit were attributed to lower demand in the prescription pharmaceutical markets, both in the private ethical and public health segments.

“Additionally, increased operational costs associated with the full operation of the newly completed K3 facility, higher finance costs and unfavourable exchange rates have contributed to the decline in profitability,” Duopharma said.

Leonard said the group will continue to focus on strategic collaborations to navigate challenges and drive sustainable growth in the coming quarters, leveraging on its strengths and seizing local and regional opportunities to deliver value to shareholders.

“With the acceptance of new supply agreements with the Government, the group is poised to deliver satisfactory performance in 2024, barring unforeseen market changes and developments," Leonard Ariff added.

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