PETALING JAYA: Dutch Lady Milk Industries Bhd
cautioned shareholders that global dairy raw material prices and other input costs may increase this year, amid the ringgit's volatility and the ongoing geopolitical tensions.
The dairy company, who said dairy raw material prices are still at high historical levels, however, noted that the prices have stabilised for now.
Looking ahead into 2024, Dutch Lady remains cautiously optimistic for 2024 due to the strength of its brands, and the increasing need for and recognition of the nutritional value of milk among Malaysians.
“The company will continue to support the local dairy farmers and increase the quantity and quality of local fresh milk,” it noted.
For its final quarter ended Dec 31, 2023 (4Q23), Dutch Lady saw its revenue inching up by 0.8% to RM364.53mil from RM361.69mil recorded in the previous corresponding quarter.
The group said this is driven by continued effects of revenue growth management initiatives earlier in the year to mitigate the impact of inflationary headwinds.
Dutch Lady reported a net profit of RM22.83mil for the quarter under review, compared to a net loss of RM20.23mil in 4Q22, as a result of revenue growth, cost price improvements driven by softening dairy raw material prices as well as lower one-off costs.
The group did not declare a dividend for the fourth quarter.
For its entire financial year of 2023 (FY23), Dutch Lady’s revenue rose by 7.7% year-on-year to RM1.44bil, while net profit surged by about 56% to RM72.39mil translating into an earnings per share of 113.10 sen.
