Dutch Lady Net Profit Rises 19.7% In First Quarter As Revenue Hits Record High

KUALA LUMPUR,MAY,2026 – Dutch Lady Milk Industries Bhd recorded a stronger financial performance for the first quarter ended March 31, 2026, with net profit rising 19.7% year-on-year to RM29.96 million.

The improved earnings were supported by stronger sales, lower commodity costs and a more favourable comparison against the previous year, when expenses were affected by accelerated depreciation and transition-related one-off costs.

Revenue for the quarter climbed 6.5% to RM397.84 million, compared with RM373.40 million in the same period last year. The figure marked Dutch Lady’s highest-ever revenue recorded in a single quarter, reflecting steady demand for the company’s dairy products.

According to the company, the stronger quarterly revenue was mainly driven by higher sales from its core Dutch Lady liquid milk range, continued growth in products launched in 2025 and stronger momentum in the out-of-home channel.

The results highlight Dutch Lady’s resilience as one of Malaysia’s leading dairy companies, especially at a time when consumers continue to show demand for essential nutrition products despite inflationary pressure and cautious spending patterns.

Earnings per share rose to 46.8 sen, compared with 39.1 sen in the previous corresponding quarter. The company also declared a first interim single-tier dividend of 30 sen per share, amounting to RM19.2 million, payable on June 16, 2026.

Dutch Lady said demand for essential products is expected to remain resilient, supported by the strength of its brands and growing recognition among Malaysians of the nutritional value of milk. The company also said it will continue supporting local dairy farming to improve both the quantity and quality of domestically produced fresh milk.

However, the company warned that operating conditions may become more challenging in the months ahead. Dutch Lady expects dairy raw material prices to trend upward for the rest of the year, while disruptions in global supply and demand caused by geopolitical tensions could increase costs for energy, shipping and key inputs.

The company also cautioned that production costs and profit margins may come under pressure from July onwards. While the stronger ringgit has helped cushion some commodity cost increases, Dutch Lady said currency fluctuations remain a key operational risk.

To manage these risks, Dutch Lady said it will continue strict management of raw material supply to ensure product availability for Malaysian consumers. The company also plans to intensify cost-control measures, reduce fixed expenditure and strengthen its working capital position.

Dutch Lady shares closed 20 sen higher, or 0.61%, at RM33 on Tuesday, giving the group a market capitalisation of about RM2.11 billion ahead of the results announcement. Year-to-date, the stock had gained 5.9%.

Overall, Dutch Lady’s first-quarter results show solid business momentum, with record revenue and higher net profit supported by stronger consumer demand and lower commodity costs. However, the company’s outlook remains cautious as rising input costs, global supply chain uncertainty and inflationary pressure could affect margins in the coming quarters.