KUALA LUMPUR (Nov 28): Dutch Lady Milk Industries Bhd foresees the domestic market to remain challenging against the backdrop of weak consumer sentiment, higher material prices and soft Malaysian ringgit.

In the third quarter ended Sept 30, 2017 (3QFY17), higher raw material costs and the weak ringgit ate into the dairy product manufacturer's profitability.

Dutch Lady's net profit slipped nearly 20% to RM32.58 million or 50.9 sen per share for the third quarter ended Sept 30, 2017 (3QFY17) from RM40.66 million, or 63.5 sen per share, in the previous corresponding quarter.

Its quarterly revenue, however, increased marginally to RM281.84 million from RM279.59 million a year ago, according to Dutch Lady's filing to Bursa Malaysia this evening.

For the cumulative nine months of FY17, its net profit slipped 13.05% to RM96.74 million or RM1.512 per share, from RM111.25 million or RM1.738 per share last year. Its revenue rose about 2.5% to RM795.48 million against RM776.06 million.

Dutch Lady declares a special dividend of 60 sen per share and an interim dividend of 50 sen per share, for the financial year ending Dec 31, 2017, payable on Dec 27.

"Despite the headwinds, the company has initiated continuous marketing campaigns leveraging on the strength of the Dutch Lady and Friso brands to protect and expand its market share with quality and nutritious product offerings," said Dutch Lady.

Shares in Dutch Lady closed two sen higher at RM59.40 today for market capitalisation of RM3.8 billion. Over the past 12 months, the stock rose about 12.9% from RM52.63.