Dutch Lady 3Q net profit drops 32% due to lower sales

-A +A

KUALA LUMPUR (Nov 25): Dutch Lady Milk Industries Bhd saw a 32% drop in its net profit to RM28.5 million for its third quarter ended Sept 30, 2014 (3QFY14) from RM42.3 million a year ago, due to lower sales coupled with reduced margins as prices of dairy-based commodity rose during the quarter.

Revenue for 3QFY14 fell 9% to RM240.5 million from RM263.8 million in 3QFY13. Earnings per share fell to 44.6 sen compared with 66.05 sen a year ago.

In a filing with the exchange today, the group attributed the lower revenue for 3QFY14 to “lower volume sales in a competitive market environment and less robust consumer confidence”.

For the nine months period, Dutch Lady’s net profit declined 28% year-on-year (y-o-y) to RM75.9 million from RM105.9 million, while revenue rose 2% y-o-y to RM736.4 million from RM719.7 million.

Earnings per share for the nine-month period stood at 118.6 sen, compared with 165.4 sen a year ago.

Looking ahead, Dutch Lady expects a competitive business environment, amid less robust consumer confidence.

“Despite the ongoing business challenges, the company remains committed to leveraging the strength of the Dutch Lady brand by innovating and renovating the product portfolio as well as enhancing higher productivity,” said the group.

Dutch Lady shares fell 64 sen or 1.38% to close at RM45.90 today, giving a market capitalisation of RM2.98 billion.