KUALA LUMPUR: Dutch Lady Milk Industries Bhd's net profit decreased 21.1 per cent to RM21.53 million in the second quarter (Q2) ended June 30, 2022 from the RM27.29 million recorded in the same quarter last year.
The dairy manufacturer's revenue in Q2 increased 19.7 per cent to RM340.09 million from RM284.04 million.
In a statement today, Dutch Lady said the Q2 performance is attributed to continued strong demand for milk as an essential and affordable nutrient in the age of Covid-19, a successful Ramadhan campaign and carefully calibrated price increases to its brand portfolio to help the company offset strong inflationary headwinds.
Dutch Lady said the global business outlook and consequently, Malaysia's outlook remains tepid due to a variety of external and internal factors.
Operating profit (excluding accelerated depreciation) declined by 14.7 per cent to RM32.9 million while the higher Q2 revenue was more than offset by the escalating prices of global dairy raw materials and negative foreign exchange results due to the weakening of the ringgit currency against the US dollar.
For the six-month period, Dutch Lady's net profit eased 4.7 per cent to RM42.1 million from RM44.16 million, while revenue increased 17.9 per cent to RM639.96 million from RM542.67 million.
Dutch Lady managing director Ramjeet Kaur Virik said the company continues to deliver a strong cash flow during these trying times.
"Whilst we have been able to show positive results in Q2, the outlook for the rest of the year and 2023 remains uncertain due to unprecedented inflationary headwinds and continued global supply chain challenges," she said.