KUALA LUMPUR (May 25): Dutch Lady Milk Industries Bhd’s net profit fell 58.58% to RM8.52 million or earnings per share of 13.3 sen in the first quarter ended March 31, 2023 (1QFY2023), from RM20.57 million or 32.1 sen in the same quarter last year, as it was hit by the unprecedented increase in the cost of dairy raw materials and negative impacts of exchange rates predominantly against the US dollar, despite higher revenue in the current quarter.

Quarterly net profit was also dragged down by RM5.1 million accelerated depreciation and transition one-off costs from its Petaling Jaya factory, the dairy product manufacturer said in a bourse filing on Thursday (May 25).

Quarterly revenue grew 18.16% year-on-year to RM354.31 million, from RM299.87 million, driven by continued strong demand for dairy products and successful festive campaigns.

On prospects, Dutch Lady expects global dairy prices to decrease somewhat in the remainder of 2023, from the current historically very high levels.

Against this backdrop, the group will continue to focus on optimising its cash flow to battle the current inflationary headwinds and secure internal financing for building and transitioning to the new manufacturing facility in Bandar Enstek, Negeri Sembilan.

Shares in Dutch Lady fell two sen or 0.08% to RM26, bringing the group a market capitalisation of RM1.66 billion.