Dutch Lady’s 2Q net profit up 29% y-o-y , lifted by higher demand and better product mix

Dutch Lady’s 2Q net profit up 29% y-o-y , lifted by higher demand and better product mix
-A +A

KUALA LUMPUR (Aug 26): Dutch Lady Milk Industries Bhd's net profit for the second quarter ended June 30, 2021 (2QFY21) rose 28.51% to RM27.29 million from RM21.23 million a year ago, thanks to higher demand for its products combined with a favourable portfolio and channel mix, which helped offset higher prices for global dairy raw materials it had to contend with.

Revenue grew 3.84% to RM284.04 million from RM273.52 million in 2QFY20, driven by the growth of liquid milk product portfolio on the back of a successful Ramadhan campaign, its bourse filing today showed. The group's earnings per share improved to 42.6 sen from 33.2 sen previously. No dividend, however, was declared this quarter.

For the six months ended June 30, 2021 (1HFY21), the group posted a net profit of RM44.16 million, slightly higher than the RM43.97 million it recorded in the previous year's January-June period, as revenue grew 3.43% to RM542.67 million from RM524. 69 million.

Looking forward, the group said the market remains volatile and is subject to various domestic and global uncertainties, foreign exchange rate fluctuations, potential regulatory changes, and the continued impact of the Covid-19 pandemic.

It also noted that global dairy prices are expected to stay high for the remainder of 2021.

“Despite these challenges, the company continues to focus on growing the consumption of milk among consumers. Over the long term, the outlook for the company remains positive from a demand perspective,” it added.

The stock closed 1.17% or 38 sen higher at RM32.76, valuing it at RM2.1 billion.

Tan Choe Choe