In the third quarter of 2024, Dutch Lady Milk Industries reported revenue of RM355.5 million, a 4.6% decrease compared the same period last year. In Q3 the company successfully completed the transition from the factory in Petaling Jaya to the new facility in Bandar Enstek as per plan.

The group said the planned transition temporarily affected the availability of products for sales to customers, whereas promotional campaigns drove higher sales in the same period last year. The move it said had no impact on availability of its core range of products for consumers in stores. As part of the transition DLMI said it discontinued the production and distribution of some of non-core range of products.

On a year-to-date basis revenue was flat versus prior year, where selective price increases on one of the product ranges and positive mix management offset the transitional effects of Q3 2024.

Operating profit for the quarter was RM21.8 million, down 16.5% from RM26.1 million in the same quarter last year. The reported operating profit includes RM13.3 million in costs for accelerated depreciation and one-off expenses, down from RM18.3 million in Q3 2023. On a like-for-like basis, excluding these adjustments, the adjusted operating profit amounted to RM35.0 million, reflecting a 21.2% decline compared to the same period in

Dutch Lady said the decline was primarily driven by lower top-line performance and the mix of products sold, whereas lower dairy raw material prices were offset by negative revaluation of currency hedges due to the strong and fast appreciation of the MYR against the USD in Q3 2024.

Profit Before Taxation for the quarter amounted to RM19.3 million this quarter, compared to RM25.3 million in Q3 2023 as a result of the above-mentioned drivers. Profit After Taxation increased by RM0.4 million to RM17.2 million due to lower tax expense in Q3 2024 following a positive correction on costs initially disallowed for tax deduction.