KUALA LUMPUR (May 27): Dutch Lady Milk Industries Bhd (KL:DLADY) said its first quarter net profit more than tripled from a year earlier on higher operating profit on the back of higher revenue and lower dairy raw material costs.

Net profit for the three months ended March 31, 2024 (1QFY2024) was RM26.66 million compared with RM8.52 million over the same period last year, the group said in an exchange filing. Earnings per share rose to 41.7 sen from 13.3 sen.

Dutch Lady said operating profit reached RM36.3 million, up 183.4% from RM12.8 million in 1QFY2023.

The group said quarterly revenue rose 2.39% year-on-year to RM362.77 million from RM354.31 million, primarily driven by carry-over effect of price increases implemented in 2023, as well as specific price increase on one of the product ranges in 1QFY2024.

Additionally, the group said it implemented various revenue growth management initiatives focused on enhancing the product and channel mix.

On a quarter-on-quarter basis, Dutch Lady’s net profit rose 16.79% from RM22.83 million in 4QFY2023, while revenue slipped 0.48% from RM364.53 million due to a changing mix of products sold and seasonal promotional costs.

The group announced an interim dividend of 25 sen per share, unchanged from 1QFY2023, with June 11 as the ex-date and June 20 as payment date.

Moving forward, Dutch Lady said it will continue to focus on optimising costs and cash flow, while planning to lower its fixed cost base and secure internal financing for building and transitioning to new manufacturing facilities.

"The outlook for Dutch Lady remains cautiously optimistic due to the strength of our brands and the increasing need for and recognition of the goodness and nutritional value of milk amongst Malaysians. The company will continue to support local dairy farmers, aiming to enhance both the quantity and quality of locally produced fresh milk," it said.

Shares in Dutch Lady closed 76 sen or 2.3% higher at RM33.76 on Monday, valuing the group at RM2.16 billion. The counter has gained 40.67% year-to-date.