KUALA LUMPUR (Aug 18): Dutch Lady Milk Industries Bhd's (KL:DLADY) second-quarter net profit surged 63.2% year-on-year, driven by stronger revenue, favourable exchange rate effects and the absence of one-off transition costs incurred a year earlier.

Net profit for the three months ended June 30, 2026 (2QFY2026) came in at RM38.2 million — its highest quarterly profit in five years — compared with RM23.4 million in 2QFY2025, the dairy producer's latest results filing on Tuesday showed.

Revenue edged up nearly 3% to RM386.6 million from RM375.6 million, driven by strong sales of its core liquid milk range.

For the six months ended June 30, 2026 (6MFY2026), net profit rose 40.7% to RM68.1 million from RM48.4 million, as revenue increased 4.7% to RM784.4 million from RM749 million.

The company did not declare any dividends with the latest results.

Looking ahead, Dutch Lady said demand for essential nutrition products remained resilient, although inflationary pressures and changing consumer spending priorities continued to influence purchasing behaviour.

The company said it will continue to closely manage raw material supplies to ensure product availability, while stepping up cost management efforts to address anticipated cost inflation.

It will also implement revenue growth management initiatives where necessary and maintain a fit-for-purpose organisational structure to improve efficiency, reduce fixed costs and strengthen its working capital position.

Dutch Lady shares ended unchanged at RM31.50 on Tuesday, giving the group a market capitalisation of RM2.02 billion.