Update Dutch Lady 2Q net profit falls 30% due to higher input costs

by **Cals** Tue 26 Aug 2014, 23:27

Update Dutch Lady 2Q net profit falls 30% due to higher input costs

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Tuesday, 26 August 2014 18:42

KUALA LUMPUR (August 26): Dutch Lady Milk Industries Bhd posted net profit of RM24.3 million for its second quarter ended June 30, 2014, declining 30% from RM34.6 million in the previous corresponding period, despite posting higher revenue.

Revenue for the quarter rose 7% to RM268 million from RM249.7 million in the year before.

In a filing with Bursa Malaysia, Dutch Lady said that its profit before tax for the quarter fell RM14 million to RM32.8 million due to the increase in dairy raw material cost.

“Revenue in the current quarter increased by 7.4% compared to the preceding year’s corresponding quarter due to volume progression and price adjustments for partial recovery of substantial increases in dairy raw material costs,” said the group.

Net profit for the six months to June 30 stood at RM47.3 million, down 26% from RM63.6 million, while cumulative revenue climbed 9% year-on-year to RM495.9 million from RM456.0 million.

The lower profit for the period was attributed to higher raw material cost, increase in fuel price, the hike in electricity tariff, and a weakened Malaysian ringgit.

Looking ahead, the group expects the business environment to remain competitive while consumer confidence is dampened.

“The company remains committed to leveraging the strength of the Dutch Lady brand and harnessing its operational efficiency,” it said.