KUALA LUMPUR (Nov 8): Duopharma Biotech Bhd’s net profit for the third quarter ended Sept 30, 2023 (3QFY2023) fell by 45.13% to RM8.97 million from RM16.35 million due to higher finance costs, among others.

Earnings per share declined to 0.93 sen from 1.72 sen, its Bursa Malaysia filing showed on Wednesday.

The group’s quarterly revenue fell by 4.43% to RM169.24 million compared to RM177.07 million, underpinned by a decrease in demand from the consumer healthcare sector and the prolonged impact of increased operational costs.

In comparison with the immediate preceding quarter, the group’s net profit came in lower than the RM12.54 million reported in 2QFY2023 while revenue edged higher from RM167.52 million.

Meanwhile, for the nine-month period ended on Sept 30 (9MFY2023), the pharmaceutical company’s net profit decreased by 16.63% to RM44.14 million from RM52.95 million a year ago, largely due to increased operational costs resulting from the upward adjustment in electricity tariff and elevated labour cost.

Revenue fell by 1.38% to RM537.23 million from RM544.76 million, underpinned by decrease in demand from the consumer healthcare sector.

Commenting on the group’s financial performance, Duopharma managing director Leonard Ariff Abdul Shatar said the gradual revenue registered on a monthly basis augurs well in the longer term, as it continues to strengthen its portfolio with high-value innovative offerings and niche products.

“We are also heartened by the government's commitment to healthcare funding, with a record allocation of RM41.2 billion in Budget 2024.

“The 13.5% increase in funding will undoubtedly enable essential reforms in the healthcare system, thus stimulating demand growth for pharmaceutical supplies,” he said.

Shares in Duopharma settled two sen or 1.61% lower at RM1.22, giving it a market capitalisation of RM1.17 billion.

Since the beginning of the year, the stock has fallen by 26.06%.