KUALA LUMPUR: Dutch Lady Milk Industries Bhd (DLMI) reported a lower net profit of RM22.03 million for the second quarter of 2024 (2Q24).
This represented a 9.0 per cent decline compared to RM24.35 million in the same period the previous year.
Despite this, the company recorded a higher revenue of RM360.9 million for the quarter, marking a 2.8 per cent increase from RM351 million in the corresponding quarter last year.
The rise in revenue was attributed to increased sales volume, the ongoing impact of strategic price adjustments made in 2023, selective pricing on a specific product range in 2024 and the mix of products sold.
The company's pre-tax profit for the quarter was RM29.0 million, down from RM32.8 million in the second quarter of 2023 (2Q23), reflecting an 11.9 per cent decrease.
"This 11.9 per cent decrease reflects investments in DLMI's future, including accelerated depreciation of assets at the Petaling Jaya factory and one-off costs related to the transition to the new Bandar Enstek facility," it said.
Its adjusted operating profit saw a significant increase of 19.7 per cent reaching RM45.2 million, compared to RM37.7 million in 2Q23.
This growth was mainly due to higher revenue and lower costs of dairy raw materials.
DLMI expects a challenging second half of 2024, facing potential obstacles such as fluctuating foreign exchange rates, increasing commodity prices and regulatory changes.
Nevertheless, the dairy manufacturer remains cautiously optimistic, supported by the strength of its brands and the increasing awareness of the importance of dairy nutrition among Malaysians.
DLMI managing director Ramjeet Kaur Virik remarked that despite navigating near-term challenges, the company remains dedicated to its mission of "Nourishing Our Planet and People at Every Stage of Life.
"The Bandar Enstek facility is not just an expansion; it's an attestation to our confidence in Malaysia's economic future and our role in shaping a healthier nation," Ramjeet said.