Tag: DutchLady

  • Profit rises 6.9% driven by improved cost efficiency and steady consumer demand

    Dutch Lady Milk Industries Berhad (DLMI) delivered a strong financial performance for the year ended 31 December 2025, with net profit rising 6.9% to RM103.28 million and operating profit increasing 17.8%. The improved results were supported by stronger cost discipline, enhanced productivity and early contributions from its upgraded manufacturing and distribution infrastructure, reflecting the company’s ongoing transformation towards a more efficient and integrated operating model.

    Despite continued consumer price sensitivity and evolving cost pressures, DLMI maintained steady demand across its portfolio while strengthening its operational execution. Revenue for FY2025 grew 3.8% to RM1.50 billion, underscoring resilient market performance amid a challenging external environment. The stronger growth in operating profit compared to revenue highlights improved operating leverage and tighter cost management across the value chain.

    A key contributor to the improved performance was the commissioning of DLMI’s IR4.0-enabled, Halal-certified manufacturing facility in Bandar Enstek, along with its integrated distribution centre. These developments have enhanced supply reliability while structurally improving efficiency across production and logistics operations, reinforcing the company’s long-term competitiveness.

    At its 63rd Annual General Meeting, Managing Director Veronika Utami highlighted that ongoing investments in manufacturing, supply chain and nutrition-led portfolio strategy are strengthening the company’s fundamentals. She noted that while consumers remain value conscious, there is a growing demand for healthier and functional nutrition, prompting DLMI to continue focusing on accessible, trusted products alongside continuous cost efficiency improvements.

    DLMI also advanced its sustainability and social impact agenda during the year. A total of 92.7% of packaging is now designed for recycling, while Scope 1 and 2 emissions intensity declined by 24%. Energy and water efficiency also improved significantly, reflecting the company’s ability to align operational gains with environmental progress. In addition, DLMI continued its commitment to community nutrition through school milk programmes and affordability initiatives, including support for thousands of students in Sarawak.

    In the first quarter of FY2026, DLMI maintained its positive momentum, posting record quarterly revenue of RM397.8 million, up 6.5%, while operating profit rose 21.5% and net profit increased 19.7%. Growth was driven by strong core portfolio performance, product innovation and expansion in the out-of-home channel, supported by continued efficiency gains.

    Looking ahead, DLMI expects a challenging operating environment shaped by volatile input costs, geopolitical uncertainties and cautious consumer spending. However, demand for affordable and trusted nutrition is expected to remain resilient, supported by government assistance programmes such as SARA. The company remains focused on strengthening its portfolio, advancing innovation, improving productivity and maintaining disciplined cost management to ensure sustainable long-term growth while delivering value to Malaysian consumers.