KUALA LUMPUR (Feb 20): Dutch Lady Milk Industries Bhd (KL:DLADY) posted a 34.63% increase in net profit for the fourth quarter, driven by a 57.9% surge in operating profit, as the dairy products producer recorded a sharp drop in costs related to its moving to a new production facility during the quarter.

For the fourth quarter ended Dec 31, 2024 (4QFY2024), net profit rose to RM30.73 million from RM22.83 million a year earlier, with its operating profit climbed to RM42.9 million from RM27.1 million.

During the quarter, accelerated depreciation as well as costs related to the group’s move to a new production facility fell to RM1.4 million in 4QFY2024 from RM31.9 million a year earlier, according to the company’s filing with Bursa Malaysia.

“The production transfer to the new state-of-the-art manufacturing facility, DLMI@Enstek was successfully completed in 3Q2024, with accelerated depreciation of assets tied to the exit from the Petaling Jaya facility having ceased at the end of 2Q2024,” said Dutch Lady.

DLMI@Enstek — the RM540 million manufacturing hub in Bandar Enstek, Negeri Sembilan — was inaugurated in May 2024. 

Excluding the one-off adjustments, the adjusted operating profit declined 25% year-on-year to RM44.3 million, primarily driven by variances in the mix of products sold and higher advertising and promotion investments to support new product launches and drive brand equity.

Dutch Lady’s quarterly revenue edged up 0.4% to RM365.97 million from RM364.53 million in 4QFY2023, driven by higher sales of its core UHT milk products and the newly launched Dutch Lady “Sip & Seal” packs.

Meanwhile, quarterly revenue edged up 0.4% to RM365.97 million from RM364.53 million in 4QFY2023, driven by higher sales of its core UHT milk products and the newly launched Dutch Lady “Sip & Seal” packs.

No dividend was declared for the quarter under review.

For the full FY2024, Dutch Lady’s net profit rose 33.5% to RM96.65 million from RM72.39 million a year earlier, while revenue inched up to RM1.45 billion from RM1.44 billion.

Looking ahead, Dutch Lady said Malaysia’s business landscape remains challenging amid geopolitical tensions, currency fluctuations, volatile commodity prices, and regulatory uncertainties.

Dairy supply constraints could further drive up costs, while tax and regulatory changes may add to input expenses. The ringgit also remains volatile due to global and domestic uncertainties, said Dutch Lady, adding that it will continue to focus on cost competitiveness.

Dutch Lady managing director Ramjeet Kaur Virik said in a statement that the company continues to focus on optimising its product portfolio and operational efficiency while maintaining its market leadership position.

“While we continue to be cautiously optimistic for the year ahead, we look forward to this journey with new opportunities boosted by increased capacity and room for innovations, enabling Dutch Lady’s growth and reinforcing our position as the leader in the Malaysian dairy industry,” he added.

Shares of Dutch Lady closed up 20 sen or 0.66% at RM30.40 on Thursday, giving it a market capitalisation of RM1.93 billion.