Mamee-Double Decker (M) Bhd's pre-tax profit for the first half year ended June 30, 2010 was almost flat, when compared with the corresponding period of 2009 due to marketing expenses for new products.
The food and beverage manufacturer's pre-tax profit stood at RM29.27 million against RM27.16 previously. The company's turnover jumped to RM235.5 million compared with RM194.49 in the first half of 2009.
'The necessary marketing support for the new products, in effect, saw the group incurring higher sales and distribution expenses for the second quarter of the year, impacting the group's bottom line,' it said in a statement today.
In addition, the group was also affected by foreign exchange losses in second quarter of the year due to the strengthening of the ringgit.
Group Managing Director, Datuk Pang Tee Chew said in line with the strong demand, the company added a new production line for 'Mister Potato Rice Crisps,' and intends to invest RM25 million in advertising and promotions for the second half of 2010, higher than the RM16 million it spend in the first of the year.
'With the increased advertising and promotions, we hope to penetrate both the local and export markets more significantly,' he added. -- Bernama