KUALA LUMPUR (Aug 15): Pharmaceutical company Duopharma Biotech Bhd (KL:DPHARMA) saw its net profit grow 33.1% to RM16.69 million in the second quarter ended June 30, 2024 (2QFY2024) from RM12.54 million a year ago, on higher revenue.

This resulted in a higher earnings per share of 1.73 sen for 2QFY2024 compared with 1.31 sen for 2QFY2023.

Revenue for the current quarter rose 30.3% to a record RM218.32 million from RM167.52 million in 2QFY2023, predominantly driven by robust performance in the prescription market, particularly the public health segment.

On the back of improved quarterly performance, Duopharma declared a first interim dividend of one sen per share, amounting to RM9.62 million for the financial year ending Dec 31, 2024 (FY2024), payable on Sept 12. This is up from the 0.5 sen per share interim dividend announced in 2QFY2023.

For the cumulative six months ended June 30, 2024 (1HFY2024), however, the group's net profit declined 9.1% to RM31.97 million from RM35.17 million a year ago, which Duopharma attributed to changes in the product mix, coupled with increased operational cost associated with the full operation of its newly completed K3 manufacturing facility in Klang, Selangor, higher finance costs and unfavourable exchange rates.

This was despite revenue increasing 11.8% to RM411.29 million in 1HFY2024 from RM367.99 million in 1HFY2023, driven by increased sales in the prescription pharmaceutical markets, ethical specialty and export segments, which cushioned the marginal drop in sales in the consumer healthcare sector in the first half.

In a statement on Thursday, Duopharma group managing director Leonard Ariff Abdul Shatar said the strong financial performance in 2QFY2024 reaffirmed the group’s strategy and reinforces its commitment to delivering high-quality healthcare solutions and expanding its market presence.

"We will continue to build on our achievements and take strategic measures to address challenges. Our focus is on driving forward with innovative solutions and strengthening partnerships to meet the evolving needs of consumers and the healthcare sector. We are particularly enthusiastic about our international ventures and sustainability efforts, which are key to our long-term vision," he added.

Going forward, Duopharma anticipates to continue facing persistent challenges such as high electricity tariffs, elevated interest rates and inflationary pressures, all of which exert pressure on manufacturing margins and overall profitability.

"Despite these hurdles, the group remains committed to enhancing internal efficiencies to mitigate the impact of rising operational and finance costs.

"Furthermore, the acceptance of new supply agreements with Pharmaniaga Logistic Sdn Bhd positions the group favourably for delivering satisfactory performance in 2024," it added.

Duopharma shares closed up 2 sen or 1.74% at RM1.17 on Thursday, giving the group a market capitalisation of RM1.13 billion. The stock has fallen 5.65% so far this year.