Dutch Lady Milk Indudties Berhad saw its Q3 revenue grow 16.2% to RM337.7 million versus Q3’21 which came in at RM290.6m million, the company attributed the rise in revenue mainly from continued strong demand for milk as an essential product and necessary price increases to offset strong inflationary headwinds.
Profit before tax was RM31.3 million which was higher than the preceeding years quarter where higher demand for Dutch Lady products, higher sales prices, and strong cost management actions were partially offset by escalating prices for global dairy raw materials and negative foreign exchange results due to weakening MYR vs USD. In line with the announced investment in its future manufacturing activities, Dutch Lady continues the accelerated depreciation of its assets in the Petaling Jaya factory that cannot be transitioned to the new site. Reported Operating Profit was therefore reduced by this accelerated depreciation, but still growing 9.1%.
As againts the precceeding quarter, the company recorded slightly lower revenue (-0.7%) versus Q2’22 of RM340 million where continued strong demand for liquid milk is more than offset by the positive effect of the Ramadhan period in the previous quarter. Operating profit in the quarter increased by 10.3% in line with continued strong demand for Dutch Lady products and strong cost management actions which is partly offset by escalating purchase prices of global dairy raw materials and negative foreign exchange results due to weakening MYR vs USD.
The company said it is determined to invest in Malaysia even in these trying times. DLMI plans to invest RM600 million, an increase from the previously announced RM400 million, between the years 2021 and 2025 for its future manufacturing activities, which it said is progressing well. The increase is mainly due to unprecedented inflation which has significantly increased the cost of materials, fuel and labour, as well as the inclusion of additional capital expenditure items.
Dutch Lady has alsodeclared a standard single-tier second interim dividend of RM0.25 per share amounting to RM16 million in respect of the financial year ending 31 December 2022.