KUALA LUMPUR (April 25): 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 spend.
In an announcement today to Bursa Malaysia, 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 kilogrammes) and 0.4% revenue decline versus the same quarter in 2018. Profit before tax decreased by 6.9% for the quarter, attributed to increased investment in advertising and promotional spend, and impact of SST (Sales and Service Tax) on local and imported services.
“The company continues to focus on growth, increasing the consumption of milk among consumers. But market remains volatile and can be impacted by various domestic and global uncertainties, foreign exchange rate and any regulatory changes. The global dairy price is expected to increase in 2019," Dutch Lady said.
Despite Dutch Lady's 1QFY19 net profit and revenue drop, the group declared a dividend of 50 sen a share. The ex and payment dates are on May 9 and 17 respectively, the company said.