KUALA LUMPUR: Dutch Lady Milk Industries Bhd says its robust financial numbers in the financial year 2023 (FY23) reflect sustained strong demand for its dairy products across market segment.
Speaking at its 61st annual general meeting (AGM), DLMI managing director Ramjeet Kaur Virik stressed that this growth reinforces the strong brand equity among Malaysian households that the company has earned with over 60 years of dairy excellence since its inception in 1963.
The dairy manufacturer recorded a revenue of RM1.4 billion in FY23, a 7.7 per cent growth from RM1.34 billion a year earlier.
Its net profit rose 56.5 per cent to RM72.4 million from RM46.3 million in the previous year while operating profit was RM100 million compared to RM56.4 million from fiscal year 2022.
Ramjeet said the financial performance in fiscal year 2023 was achieved in the headwinds of unpredictable inflationary pressure, geopolitical tensions, high exchange rate volatility and persistent uncertainties in global supply chains.
She believed that the company has earned the trust of consumers, business partners and the government, and together, shaped the dairy industry landscape in the country while consistently supporting the national agenda of developing the country's capacity and capability in sustainable dairy.
"We are on track to transition to our new state-of-the-art, Halal manufacturing facility in Bandar Enstek which will enable us to double our current capacity with immense potential for future innovations," Ramjeet said.
She added that the company's improved performance last year helped to back investments in the new manufacturing facility in Enstek.
According to DLMI, it has not employed any long-term debt in 2023 as the company continued to focus on cash preservation and financed the Enstek factory through internal funds.
2023 was also a critical year when DLMI's main shareholder, FrieslandCampina, undertook a global reorganisation of the dairy business in various markets including Malaysia.
As a result, this saw the roll-out of a global reorganisation exercise to help devise a fit-for-purpose operating model and right-sized cost structure in all FrieslandCampina markets.
"The end objective of the strategy is to focus on our purpose, 'Nourishing Our Planet and People in Every Stage of Life', drive sustainable future growth and improve profitability," Ramjeet said, adding that DLMI will continue supporting the government to combat the poor nutritional status of children in Malaysia.
DLMI launched its 2023 School Milk Programme last year whereby 75,000 primary school children are targeted to be recipients of its milk products.
By the end of this programme in 2024, DLMI would have supplied close to 14 million packs of milk products to nourish primary school children in Malaysia.