Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on November 29, 2019

KUALA LUMPUR: Dutch Lady Milk Industries Bhd’s net profit fell 26.33% to RM25.2 million for the third quarter (3Q) ended Sept 30, 2019, from RM34.21 million last year, despite posting higher revenue.

Dutch Lady attributed the lower earnings to “category product mix changes, higher raw material prices, negative exchange rates, investment in advertising and promotional spend, and the sales and service tax on local and imported services”.

Earnings per share, accordingly, decreased to 39.4 sen from 53.5 sen, according to a Bursa

Malaysia filing yesterday.

This was despite quarterly revenue rising 7.49% to RM276.31 million, from RM257.05 million previously.

The company, nonetheless, declared an interim dividend of 50 sen per share amounting to RM32 million in respect of the financial year ending Dec 31, 2019, payable on Dec 24.

Meanwhile, its net profit for the cumulative nine months ended Sept 30, 2019 was down 23.05% at RM76.29 million or RM1.19 a share, from RM99.15 million or RM1.55 a share last year, though revenue grew marginally by 0.96% to RM784.91 million from RM777.41 million.

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

Dutch Lady shares closed unchanged at RM57.08 yesterday, valuing the company at RM3.65 billion.

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