Dutch Lady 2Q net profit lower at RM21.53mil

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KUALA LUMPUR: Dutch Lady Milk Industries Bhd's (DLMI) net profit for the second quarter ended June 30, 2022 decreased to RM21.53 million against RM27.29 million in the same quarter last year.

Revenue rose to RM340.09 million from RM284.04 million previously, the group said in a filing with Bursa Malaysia today.

Net profit on a six-month cumulative basis for the period ended June 30 2022 stood at RM639.96 million against RM542.67 million a year ago with revenue at RM639.96 million and RM542.67 million, respectively.

It said the higher revenue for Q2 FY2022 was mainly driven by continued strong demand for milk as an essential product, a successful Ramadhan campaign and necessary price increases to offset strong inflationary headwinds.

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"Despite the continued COVID-19 challenges, the company has been able to operate at full capacity and drive the penetration of milk consumption,” it said.

Operating profit, excluding accelerated depreciation in the quarter, declined by 14.7 per cent from the same quarter last year, where higher revenue was more than offset by escalating prices of global dairy raw materials and negative foreign exchange results due to weakening ringgit.

"In line with the announced investment in our future manufacturing activities, DLMI started the accelerated depreciation of its assets in the Petaling Jaya factory that cannot be transitioned to the new site. Reported operating profit was therefore reduced by this accelerated depreciation,” it said. - Bernama


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