Dutch Lady's profit hit by higher material costs

ipagrab290315 4... A half-empty rack displaying Dutch Lady products as customers stop to try out some samples at Mydin Hypermarket in Meru, Ipoh.

KUALA LUMPUR: Dutch Lady Milk Industries Bhd’s pre-tax profit slipped to RM42.1mil in the first quarter ended March 31, 2017, from RM45.79mil in the same period last year.

The 8% lower pre-tax profit was due to higher material prices as well as investments in advertisement and promotion, the company said in a filing with Bursa Malaysia on Thursday.

The dairy products manufacturer’s revenue, however, rose to RM250.1mil from RM249.79mil previously.

Moving forward, the company foresees the market remaining challenging amid higher material prices and a weak ringgit.

“Nonetheless, the company will remain focused and committed to leveraging on the strength of the Dutch Lady brand and quality offerings to the Malaysian consumer,” it added. - Bernama