KUALA LUMPUR (Aug 21): Dairy manufacturer Dutch Lady Milk Industries Bhd (KL:DLADY) saw its net profit fall 9.1% to RM22.04 million in the second quarter ended June 30, 2024 (2QFY2024) from RM24.25 million a year earlier, on accelerated depreciation of assets at its Petaling Jaya factory in Selangor and one-off costs related to the transition to its new Bandar Enstek facility in Negeri Sembilan.

Earnings per share for 2QFY2024 stood at 34.4 sen, down from 37.9 sen in 2QFY2023.

However, revenue for the quarter rose 2.8% to RM360.87 million from RM351.19 million a year earlier, driven by increased sales volume, the carry-over effect of price increases implemented in 2023, selective pricing in 2024 and the product mix sold.

No dividend was declared for the quarter.

For the six-month period ended June 30, 2024 (1HFY2024), the group's net profit jumped 48.6% y-o-y to RM48.7 million from RM32.77 million, as revenue climbed 2.6% y-o-y to RM723.65 million from RM705.51 million.

In a statement on Wednesday, Dutch Lady managing director Ramjeet Kaur Virik said it reflects the group's resilience and strategic planning during a transformative period as the company transitions to full operations at its RM540 million manufacturing facility in Bandar Enstek, which opened on May 30.

“This investment underscores our long-term commitment to nourishing the nation and driving innovation in the local dairy industry,” Ramjeet added.

Looking ahead, the group anticipates a challenging second half of 2024, with potential headwinds including fluctuating foreign exchange rates, rising commodity prices and regulatory changes.

However, the group remains cautiously optimistic, supported by the strength of its brands and growing awareness of the importance of dairy nutrition among Malaysians.

"As Dutch Lady moves forward with the full transition to the Bandar Enstek facility expected by 3Q2024, followed by the construction of a dedicated distribution centre in the first half of 2025, the group is poised to enter a new era of growth, innovation and sustainable impact in the Malaysian dairy industry," Ramjeet said.

Shares in Dutch Lady rose eight sen or 0.3% to RM32.02 on Wednesday, valuing the group at RM2.05 billion.