KUALA LUMPUR: Duopharma Biotech Bhd's net profit rose 15 per cent to RM20.29 million in the first quarter (Q1) ended March 31, 2022, from RM17.61 million a year ago.
The company's revenue also increased by 12 per cent to RM185.94 million in Q1 2022 from RM166.45 million a year ago.
This is due to higher sales to consumer healthcare and the private ethical sector.
Duopharma Biotech has recorded improved earnings per share of 2.19 sen, compared with 1.90 sen a year ago.
Group managing director Leonard Ariff Abdul Shatar said earnings in the upcoming quarters would be buoyed by the RM375 million revised government tender to supply Insugen-Insulin Recombinant Human Formulations.
Leonard said the tender was awarded to Duopharma Marketing Sdn Bhd, a wholly-owned subsidiary of Duopharma Biotech, and Biocon Sdn Bhd, a wholly-owned subsidiary of Biocon Biologics Ltd, UK.
"In addition, the contract to supply pharmaceutical and non-pharmaceutical products to government hospitals and clinics has been extended for 12 months until end-2022," it said.
According to Leonard, the company may also enjoy potential savings of more than RM10 million upon completing some qualifying assets by 2024.
This is due to the Budget 2022 announcement that the government will extend the period for special reinvestment allowance to the year of assessment 2024.
"We are cautiously optimistic with our outlook this year as the country's economy is improving following the reopening of borders and with most Covid-19 restrictions having been lifted.
"Over the longer term, demand for healthcare services is growing, and the government's continuous emphasis on the sector will bode well for the company," he added.