Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 28): Dutch Lady Milk Industries Bhd's net profit fell 26.33% to RM25.2 million for the third quarter 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 rate, investment in advertising and promotional spend, sales and services tax (SST) on local and imported services".

Earnings per share, accordingly, decreased to 39.4 sen from 53.5 sen, according to a Bursa Malaysia filing today.

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

The company, nonetheless, has 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-month period 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 rate and potential regulatory changes.

"However, the company continues to focus on growth increasing the consumption of milk among consumers," said Dutch Lady, adding that the global dairy price is expected to stay high for the remainder of the year.

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

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