KUALA LUMPUR: Dutch Lady Milk Industries Berhad (DLMI) reported a revenue of RM355.5 million for the third quarter (Q3) ended Sept 30, 2024, reflecting a 4.6 per cent decline compared to the same quarter last year.
The decline was due to the company's transition to its new state-of-the-art manufacturing hub in Bandar Enstek, which temporarily impacted product availability for customer distribution.
However, DLMI emphasised that the availability of its core product range for consumers on store shelves remained unaffected.
DLMI's operating pre-tax profit for Q3 was RM21.8 million, a decrease of 16.5 per cent from a year ago.
Lower revenue and the mix of products sold affected the company's profitability.
Although the company saw savings from lower dairy raw material prices, the Q3 financial results were also impacted by a loss on currency hedges due to the Ringgit's sharp rise against the US Dollar.
DLMI managing director Ramjeet Kaur Virik said that the lower profitability also factored in a RM13.2 million accelerated depreciation and one-off costs related to the construction and transition to Bandar Enstek.
"Our year-to-date operating cash flow is positive, yet lower than in the same period last year, mainly caused by changes in working capital. These adjustments are part of our strategy to support our transition," she said.
Ramjeet said that DLMI remains prudent in managing its cash position to ensure long-term sustainability of its core business.
She also emphasised the company's focus on cost and revenue management.
This strategic focus enables DLMI to invest significantly in its brands, assets, and people, recognising that talent is critical to achieving the long-term goal of driving milk consumption in the country, she said.
Ramjeet added that as part of the milestone transition, fully exiting its iconic legacy plant in Petaling Jaya, the company has streamlined its product portfolio, focusing resources on core, high-quality, Halal dairy products for Malaysian consumers.
Meanwhile, DLMI's new distribution centre is expected to be operational by mid-2025.
Ramjeet said that this strategic expansion is a pivotal move that not only facilitates the company's continued growth but also opens up new opportunities to solidify its position as the leader in the Malaysian dairy industry.
The company will also continue supporting local dairy farmers to enhance the quantity and quality of locally sourced fresh milk, she said.