KUALA LUMPUR: Dutch Lady Milk Industries Bhd (DLMI) net profit for the third quarter (Q3) ended September 30, 2022, rose 19.7 per cent year-on-year (YoY) to RM24.4 million from RM20.38 million a year ago due to strong demand for its products.
Revenue grew 16.2 per cent YoY to RM337.77 million from RM290.66 million, buoyed by continued demand for milk as an essential product and necessary price increases to offset strong inflationary headwinds.
Despite the continued Covid-19 challenges, the company could operate at full capacity and drive the penetration of milk consumption with occasions and affordability, continuing its purpose of nourishing the nation with trusted dairy nutrition.
Operating profit, excluding accelerated depreciation, in the quarter increased by 16.3 per cent, where higher demand for its products, higher sales prices and strong cost management actions were partially offset by escalating prices for global dairy raw materials and negative foreign exchange results due to weakening ringgit against the US dollar.
In line with the announced investment in its future manufacturing activities, DLMI continued the accelerated depreciation of its assets in the Petaling Jaya factory that cannot be transitioned to the new site.
For the nine months, the company's net profit increased by three per cent to RM66.5 million from RM64.54 million in the corresponding period last year.
Revenue for the period expanded 17.4 per cent YoY to RM977.72 million versus RM833.16 million a year ago.
DLMI managing director Ramjeet Kaur Virik said the outlook for the rest of the year and next year remains uncertain due to inflationary concerns and the persistent global supply chain challenges for the organisation and manufacturing sector in general.
She added that DLMI would continue to be prudent and agile in its operations to preserve cash and control costs where possible in a complex manufacturing environment.
"DLMI will continue to be focused on our purpose of Nourishing the Nation for many decades to come, with our new advanced production hub in Bandar Enstek scheduled to be operational in 2024.
"Our new world-class factory will incorporate Industrial Revolution (IR) 4.0 features into its daily operations, changing how we manufacture our high-quality dairy products for Malaysians and help contribute to greater IR 4.0 adoption in the country.
"This will also enable us to amplify our role as a partner to the nation in strengthening the food security and national health agenda," she added.