KUALA LUMPUR (June 26): Dutch Lady Milk Industries Bhd’s net profit tumbled 33.02% to RM22.73 million in the first quarter ended March 31, 2020 (1QFY20) from RM33.9 million a year earlier, on lower revenue and amid higher dairy raw material prices.

In a filing with Bursa Malaysia, Dutch Lady said earnings per share fell to 35.5 sen from 53 sen.

Quarterly revenue fell 5.21% to RM251.17 million, from RM264.99 million previously, due to product mix changes and early impact of the COVID-19 pandemic.

Nonetheless, the group said most of its brands have been outperforming the category and have been gaining market share during the quarter.

Dutch Lady declared a first interim dividend of 40 sen per share, payable on July 24.

On prospects, the group said the market remains volatile and is subject to various domestic and global uncertainties, foreign exchange rate and potential regulatory changes.

“The recent COVID-19 pandemic and the introduction of various measures from international border closure to the national Movement Control Order negatively impacted the company’s sales.

“The global dairy price is also expected to stay volatile for the remainder of 2020,” the group said.

Dutch Lady also anticipates a slower recovery curve due to potential reduction in disposable income as an aftermath of COVID-19.

The long-term  outlook, however, remains positive, the group said, adding that it will stay agile with its business model to weather the economic impact of COVID-19 with initiatives such as accelerating e-commerce, digitalisation and cost-control measures.

Dutch Lady shares price closed 0.46% or 20 sen lower at RM43, bringing it a market capitalisation of RM2.75 billion.

The counter has risen 16% since its recent low of RM37 on March 19, but is still down 12% year to date.