KUALA LUMPUR (Nov 8): Duopharma Biotech Bhd (KL:DPHARMA) said its net profit increased 73.9% to RM15.59 million in the third quarter ended Sept 30, 2024 (3QFY2024) from RM8.97 million a year ago, on higher revenue.

Revenue for the quarter rose 23.3% to RM208.73 million from RM169.24 million in 3QFY2023, driven by higher sales across key sectors, particularly the public health segment, the pharmaceutical company said in an exchange filing.

No dividend was declared for the quarter.

For the first nine months of FY2024, Duopharma's net profit rose 7.7% to RM47.56 million from RM44.14 million a year ago, while revenue increased 15.4% to RM620.02 million from RM537.23 million.

Duopharma said that during 3QFY2024, two of its subsidiaries — Duopharma (M) Sdn Bhd and Duopharma Manufacturing (Bangi) Sdn Bhd — won contracts worth RM87.66 million to supply pharmaceutical and non-pharmaceutical products to the government until Dec 31, 2026.

This raises the two firms' total supply contract value to RM665.76 million.

In a statement, Duopharma group managing director Leonard Ariff Abdul Shatar said the company's financial performance in 3QFY2024 reaffirmed the value of its product portfolio.

“Looking ahead, we see healthy potential in the 10% increase in allocation for the Ministry of Health announced in the recent Budget 2025, reflecting the government's strong commitment to funding public healthcare. This will in turn drive continued demand for medical supplies and opportunities for the pharmaceutical industry,” he said.

Going forward, Duopharma expects 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.

However, the trend of active pharmaceutical ingredient prices normalising to pre-pandemic levels is expected to provide some relief, cushioning the impact of rising operational costs, the company said.

“Despite these headwinds, the group remains committed to enhancing internal efficiencies and cost-management strategies to mitigate the impact of increasing operational and financial costs,” it added.

Shares in Duopharma closed unchanged at RM1.25 on Friday, giving the company a market capitalisation of RM1.2 billion. The stock has fallen 0.8% so far this year.