Dutch Lady Milk Industries Bhd managing director Ramjeet Kaur Virik— ART CHEN/The Star
KUALA LUMPUR: Dutch Lady Milk Industries Bhd
(DLMI) anticipates a challenging second half of 2024, with potential headwinds including fluctuating foreign exchange rates, rising commodity prices, and regulatory changes.
The dairy group, however, remains cautiously optimistic, buoyed by the strength of its brands and growing awareness of dairy nutrition's importance among Malaysians.
“While we navigate near-term challenges, our focus remains steadfast on our purpose of 'Nourishing Our Planet and People in Every Stage of Life'. The Bandar Enstek facility is not just an expansion; it's an attestation to our confidence in Malaysia's economic future and our role in shaping a healthier nation,” managing director Ramjeet Kaur Virik said in a statement.
DLMI’s net profit dipped 9.13% to RM22mil in the second quarter ended June 30 (2Q), compared with RM24.2mil in the year-ago quarter.
Revenue, however, climbed to RM360.9mil from RM351.2mil last year while earnings per share dropped to 34.40 sen against 37.90 sen a year ago.
DLMI said the higher revenue was driven by increased sales volume and the continued effect of strategic price adjustments implemented in 2023, as well as selective pricing on one of the product ranges in 2024 and the mix of products sold.
In the first six months. DLMI posted a net profit of RM48.7mil, up 48.6% to RM32.8mil while revenue grew 2.6% to RM723.6mil from RM705.5mil last year.
“Our 2Q results demonstrate DLMI's resilience and strategic foresight as we navigate a transformative period. The inauguration of our RM540mil state-of-the-art manufacturing facility in Bandar Enstek on May 30, 2024 marks a pivotal moment in our 61-year journey in Malaysia.
“As we transition to full operations at Bandar Enstek, we're not just expanding our capacity; we're reimagining the future of dairy production in Malaysia. This investment underscores our long-term commitment to nourishing the nation and driving innovation in the local dairy industry,” Ramjeet said.
