This article first appeared in The Edge Financial Daily on April 26, 2019

KUALA LUMPUR: Dutch Lady Milk Industries Bhd’s net profit declined 0.96% to RM33.9 million in the first quarter ended March 31, 2019 (1QFY19) from RM34.23 million a year earlier on lower revenue and amid higher advertising and promotional spending.

In a filing with Bursa Malaysia yesterday, Dutch Lady said revenue fell to RM264.99 million from RM266.11 million.

“Investment in strategic pricing to ensure affordability led to 6% volume growth [in kilograms] and 0.4% revenue decline versus the same quarter in 2018. Profit before tax decreased by 6.9% for the quarter.

“The company continues to focus on growth, increasing the consumption of milk among consumers. But the market remains volatile and can be impacted by various domestic and global uncertainties, foreign exchange rate and any regulatory changes,” it said.

It said despite the fall in the company’s 1QFY19 net profit and revenue, it has declared a dividend of 50 sen per share. The ex- and payment dates are on May 9 and May 17 respectively, it said.