KUALA LUMPUR (May 23): Duopharma Biotech Bhd’s (KL:DPHARMA) net profit dropped 32.5% for the first quarter amid lower demand in the prescription pharmaceutical products, higher costs as well as unfavorable exchange rates.

Net profit for the three months ended March 31, 2024 (1QFY2024) fell to RM15.28 million from RM22.63 million a year earlier, while revenue slipped 3.74% to RM192.97 million from RM200.48 million. The group did not declare any dividend for the quarter under review.

"The persistent challenges, such as strengthening US dollar, high electricity tariffs and high interest rates continue to pose pressure on manufacturing margins and overall profitability,” said managing director Leonard Ariff Abdul Shatar in a statement.

He said the group is actively working to improve operational efficiencies internally to mitigate the impact of these rising costs.

Notwithstanding the challenges, Leonard said Duopharma is poised to deliver a “satisfactory” performance in 2024, barring unforeseen market changes and developments.

He revealed that two subsidiaries of the group, Duopharma (M) Sdn Bhd and Duopharma Manufacturing (Bangi) Sdn Bhd, recently secured 11 contracts in total to supply pharmaceutical and non-pharmaceutical products to government offices and facilities.

These contracts, valid until Dec 31, 2026, are valued at approximately RM578.09 million and were awarded by Pharmaniaga Logistics Sdn Bhd, a wholly-owned subsidiary of Pharmaniaga Bhd.

Shares of Duopharma closed unchanged at RM1.26 on Thursday, valuing the group at RM1.21 billion.