Dutch Lady drops 8.6% in active afternoon trade

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KUALA LUMPU (Dec 2): Shares in Dutch Lady Milk Industries Bhd have declined some 8.6% in active afternoon trade today.

At 4:12pm, shares in the dairy company traded 8.6% or RM4.80 lower at RM51 apiece, valuing the company at RM3.23 billion.

The counter saw 69,600 shares changing hands, exceeding its 200-day average trading volume of 10,188 shares.

The counter began the trading day at an intraday high of RM55.80; however, it eventually declined to RM49.90 at 3:14pm, before recovering to its current level.

The group's net profit for the third quarter ended Sept 30, 2019 (3QFY19) fell 26.33% to RM25.22 million, from RM34.21 million in the corresponding quarter last year.

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

The dairy company declared an interim dividend of 50 sen per share amounting to a total payout of RM32 million for the financial year ending Dec 31, 2019, which is payable on Dec 24.

The lower quarterly earnings were attributed to category product mix changes, higher raw material prices, negative exchange rates, investments made in advertising and promotions, and the sales and services tax (SST).

For the nine months ended Sept 30, 2019 (9MFY19), net profit fell 23.05% to RM76.29 million, from RM99.15 million last year, with revenue for the period increasing 0.96% to RM784.91 million from RM777.41 million last year.