KUALA LUMPUR: Dutch Lady Milk Industries Bhd’s (DLMI) net profit for the first quarter (Q1) ended March 31, 2022 rose to RM20.57 million from RM16.88 million in the same period last year.
Revenue increased 15.9 per cent to RM299.87 million from RM258.64 million previously, driven by enhanced economic activities due to the relaxation of movement control order (MCO), regional expansion and price increases to offset strong inflationary headwinds.
In a filing with Bursa Malaysia, DLMI said despite the continued COVID-19 challenges, the company has been able to operate at full capacity and drive the penetration of milk consumption with occasions and affordability, continuing its purpose of nourishing the nation with dairy nutrition.
“Operating profit (excluding accelerated depreciation) in the quarter increased 18.9 per cent, where higher demand for Dutch Lady products, supported by trade and brand investments more than compensated escalating prices of global dairy raw materials,” it said.
In a separate statement, managing director Ramjeet Kaur Virik said despite the unprecedented cost headwinds and global supply chain challenges, DLMI has posted strong operational profit improvement on the back of topline growth, revenue growth management and a strong focus on being cost-prudent.
“The market remains volatile and is subject to various domestic and global uncertainties and challenges, foreign exchange rate fluctuations and potential regulatory changes.
“The global dairy prices are at historically very high levels and are expected to remain at this level for the rest of 2022, resulting in unprecedented inflationary headwinds,” she said. – BERNAMA
