DLMI Posts Strong Q2 Growth as Bandar Enstek Operations Drive Momentum

The quarter saw DLMI achieve revenue of RM375.6 million, up 4.1% from Q2 2024, driven by excellent performance across its flagship Dutch Lady liquid milk portfolio. The professional channel delivered particularly strong results, while the company's latest product innovations contributed meaningfully to the top line growth.

Profitability showed marked improvement, with operating profit rising 11.4% to RM33.9 million from RM30.5 million a year earlier. The company has successfully moved past the heavy transition costs of 2024, with one-off expenses dropping to RM5.6 million this quarter compared to RM14.7 million in the same period last year.

Looking at core operational performance, the company generated RM39.6 million in operating profit excluding transition costs, compared to RM45.2 million in Q2 2024. DLMI benefited from growing volume and revenue, while the company invested in additional marketing activities. Inflation of dairy raw material continues to pressure input costs.

Net profit advanced 6.2% to reach RM23.4 million, building on the RM22.0 million achieved in the prior year quarter.

"What we're seeing in these results is the operational momentum we've been building toward," said DLMI Managing Director, Veronika Utami. "Our DLMI@Enstek facility is delivering both, the capacity and efficiency improvements that are now flowing through to our financial performance."

"Our focus continues to be on smart growth; ensuring our products remain affordable for Malaysian families while maintaining the profitability we need to keep investing in innovation and our workforce. The market response to our core products has been very encouraging," Utami noted.

July marked a significant operational milestone with the new Distribution Centre being fully operational following its May 30 inauguration. This milestone marks the completion of DLMI's infrastructure modernisation journey, unlocking new efficiencies across its entire supply chain. With DLMI@Enstek, the company is setting a new benchmark for Malaysia's dairy industry by combining state-of-the-art manufacturing with an integrated distribution hub, simultaneously elevating dairy production to the next generation.

Despite ongoing macro challenges including global economic uncertainty, commodity price volatility, and foreign exchange fluctuations, DLMI maintains a positive outlook supported by strong brand recognition and increasing Malaysian consumer focus on nutritional wellness.

"We've built a platform for sustainable growth," Utami emphasised. "Our operational foundation is now where we want it to be, giving us the agility to respond to market opportunities while staying true to our purpose of Nourishing Our Planet and People in Every Stage of Life."

The company strategically streamlined its product range during the transition period, discontinuing select non-core items in Q3 2024 to concentrate resources on its most popular Halal dairy offerings that resonate strongest with Malaysian consumers.

DLMI remains committed to strengthening Malaysia's domestic dairy sector, continuing as a major buyer of locally produced fresh milk while supporting farmer development programmes aimed at improving both production volumes and quality standards.

Incorporated in 1963, Dutch Lady Milk Industries Berhad (DLMI) is a leading dairy company in Malaysia. It is owned by one of the largest dairy cooperative companies in the world, Royal FrieslandCampina NV, a Dutch multinational dairy company. We were the first milk company to be listed on Bursa Malaysia in 1968, and the first to introduce Formulated Milk Powder for Children in Malaysia in 1988.

Staying true to our purpose of Nourishing Our Planet and People in Every Stage of Life, DLMI manufactures and sells a wide range of quality dairy products for the home and export market. Through a unique collaboration between FrieslandCampina and four international research teams/universities, we initiated the South East Asian Nutrition Surveys (SEANUTS) study in 2009, involving four countries - Malaysia, Indonesia, Vietnam and Thailand. SEANUTS is the largest and most extensive nutrition and health study ever done in South-East Asia, wherein 16,744 children up to 12 years old were surveyed over a four-year period. The follow-up SEANUTS II was conducted between 2019 - 2021 involving 14,000 children in the four countries. More information can be found at https://www.dutchlady.com.my

FrieslandCampina is a large international dairy company with a cooperative history dating back more than 150 years. The company processes milk into nutritious dairy products, such as milk, yoghurt, condensed milk, dairy-based beverages, cheese, butter, quark and cream. The dairy company supplies specific nutrition for specific consumer groups, such as children, the elderly and sportspeople. Professional customers, such as bakers, pastry chefs, chocolate confectioners, chefs and caterers can rely on FrieslandCampina for a broad range of products, including creams, butters, desserts and fillings. The company also supplies high-quality ingredients to food producers and pharmaceutical companies. Dutch, Belgian and German dairy farmers jointly own the company through Zuivelcoöperatie FrieslandCampina U.A. For additional information: https://www.frieslandcampina.com.

Issued by Dutch Lady Milk Industries (DLMI) Berhad

Ezmir Hazizi Azhar Corporate Affairs Director

Tel: 012-648 4419 Email: ezmirhazizi.azhar@frieslandcampina.com

Meera Selvaratnam Communications Manager

Tel: 012-911 0733 Email: meera.selvaratnam@frieslandcampina.com