Dutch Lady's net profit fell almost 20% in Q3

PETALING JAYA: Dutch Lady Milk Industries Bhd saw a 19.85% decline in its net profit for the third quarter ended September 30, to RM32.58 million from RM40.66 million a year ago due to higher material prices and a weaker ringgit.
Revenue for the quarter under review inched slightly up by 1% to RM281.84 million from RM279.60 million on the back of challenging market conditions.
“The overall domestic market is expected to remain challenging with weak consumer sentiment, higher material prices, and weak Malaysian Ringgit. Despite the headwinds, the group has initiated continuous marketing campaigns leveraging on the strength of the Dutch Lady and Friso brands to protect and expand its market share with quality and nutritious product offerings,” the group’s board of directors said.
The group’s profit for the cumulative period of nine months slumped 13% to RM96.74 million from RM111.25 million in the first three quarters of 2016, also due to higher material prices and a weaker ringgit.
Meanwhile, revenue increased slightly by 2.5% to RM795.48 million from 776.06 million last year.
Dutch Lady’s shares gained 0.03% to close at RM59.40 with some 3,400 shares changing hands.