CCM Duopharma Biotech Bhd (CCMD) recorded a 51.5 percent growth in revenue for the first six months ended 30 June 2017 (H1 2017) to RM240.36 million from RM158.61 million in the corresponding period last year while profit before tax (PBT) also increased 40.2 percent to RM24.76 million from RM17.66 million in the corresponding period in 2016.
CCMD’s significant rise in revenue and PBT for H1 2017 was driven by contributions from its supply of renal and endocrine products and increased demand from public health sector via tenders.
Revenue for the second quarter ended 30 June 2017 (Q2 2017) eased 5.1 percent to RM117.05 million from RM123.31 million in the preceding quarter (Q1 2017). This was mainly due to a lower uptake of CCMD’s products from public health sector. However, the Company’s PBT for the same period rose 4.3 percent to RM12.64 million from RM12.12 million in the previous quarter (Q1 2017). The improvement in PBT was attributed to lower production costs which resulted in higher margins.
CCMD is cautiously optimistic to gain a satisfactory performance for the rest of the financial year as the demand for pharmaceutical products is expected to remain stable despite facing challenges from the weakening of the Ringgit which affects the Company’s production and operational costs. The risks inherent in persistent foreign exchange volatility and uncertainties in the economic environment may influence manufacturing margins.
For the current financial period ended 30 June 2017, the Board of Directors is recommending an interim dividend of 2.5 sen per share amounting to approximately RM6.97 million based on paid up capital of 278,959,000 shares. The entitlement date in respect of the interim dividend is 20 October 20 2017 and the payment will be made on 10 November 2017.
CCMD is a subsidiary of Chemical Company of Malaysia Berhad, which is listed on the main market of Bursa Malaysia and is a key player in the chemicals and pharmaceuticals industries.