KUALA LUMPUR: Dutch Lady Milk Industries Bhd's net profit rose 21.9 per cent to RM20.57 million in the first quarter (Q1) ended March 31, 2022, from RM16.88 million a year ago.
Revenue climbed 15.94 per cent to RM299.87 million from RM258.64 million in the same quarter last year.
The revenue and profitability increase was due to enhanced economic activity from the relaxation of the Movement Control Order (MCO), regional expansion, and price increases to offset strong inflationary headwinds.
"Despite the continued Covid-19 challenges, the company has been able to operate at full capacity and drive the penetration of milk consumption with occasions and affordability," it said.
Managing director Ramjeet Kaur Virik said the encouraging results are mainly due to its strong purpose and brands, commercial execution and strategy, and ability to meet consumer demand.
Despite the unprecedented cost headwinds and global supply chain challenges, Ramjeet said the company posted strong operational profit improvement on topline growth, revenue growth management, and a focus on being cost-prudent.
Meanwhile, Ramjeet said the company's robust topline growth in 2021 also demonstrates the sustainable strength of our brands to meet the high standards of consumer demand.
She said Dutch Lady continues to focus on creating a high-performance culture to raise productivity in every facet of operations.
"The company is also cognizant that the potential of the local market is bright. This is why the company is building a RM400 million manufacturing facility in Bandar Enstek, Negeri Sembilan, to cater to its expansion plans in the country.