KUALA LUMPUR (Aug 27): Dutch Lady Milk Industries Bhd's net profit declined 44% to RM17.19 million for the second quarter ended June 30, 2019, from RM30.7 million in the previous year's corresponding quarter.

Revenue for the quarter fell 4% to RM243.61 million from RM254.25 million a year earlier.

The group, in a filing today, attributed the decline in performance to a fall in the infant and toddler formula market, although this was partially offset by the liquid market category.

Besides that, the group also cited other factors including a change in its category product mix, higher raw material prices and negative exchange rate impact, which had affected earnings for the quarter.

Net profit for the first half of the year fell 21% to RM51.09 million, from RM64.93 million a year earlier, while cumulative revenue fell 2.3% to RM508.59 million from RM520.36 million.

While there is a decline in the infant and toddler formula market, the group said the liquid milk market is seeing growth, driven by consumer pattern changes and innovations launched by Dutch Lady.

The group said it will continue to focus on growth going forward, by increasing the consumption of milk among consumers.

"Dutch Lady will continue investing in long-term growth and will drive efficiencies to mitigate impact of higher raw material prices and weaker Malaysian ringgit versus US dollar.

"Over the long term, the outlook for the company remains positive due to the strength of its brands and the increasing need and recognition of the goodness and nutritional value of milk and its complementing dairy products among Malaysians," it said.

Dutch Lady shares were last traded at RM63.90, giving a market capitalisation of RM4.09 billion.