Dutch Lady's 3Q net profit falls 19%; pays RM1.10 dividend

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KUALA LUMPUR (Nov 29): Dutch Lady Milk Industries Bhd's net profit fell 19% year-on-year in its third quarter ended Sept 30, 2016 (3QFY16) as it spent more to support new launches to drive sales, which offset the revenue increase that it saw during the quarter.

Net profit came in at RM40.66 million or 63.5 sen per share, compared with RM49.95 million or 78.1 sen per share a year ago, as it penned in higher cost of sales and advertising and promotion investment to support new launches.

Revenue was up 9% at RM279.59 million compared with RM255.95 million, its bourse filing today showed.

It also declared a single-tier interim dividend of 50 sen per share and a single-tier special interim dividend of 60 sen per share for the financial year ending Dec 31, 2016 (FY16), payable on Dec 29.

For the cumulative nine months (9MFY16), Dutch Lady’s net profit dipped 4% to RM111.25 million or 173.8 sen per share from RM115.76 million or 180.9 sen per share a year ago, though revenue rose 6% to RM776.06 million from RM730.76 million.

Going forward, Dutch Lady said the overall domestic market is expected to remain weak with poor consumer confidence.

“Despite the ongoing challenges, the company had initiated continuous marketing campaigns leveraging on the strength of the Dutch Lady brand to protect and expand its market share with quality and nutritious product offerings,” Dutch Lady said.

Shares of Dutch Lady rose 10 sen or 0.2% to RM55.40 today, for a market capitalisation of RM3.55 billion. Year to date, the counter has risen 16%.