DUTCH LADY MILK INDUSTRIES BERHAD (5063-V)
(Incorporated in Malaysia)
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
For the financial quarter ended 30 June 2024
INDIVIDUAL QUARTER | CUMULATIVE QUARTER | ||||||
CURRENT | COMPARATIVE | 6 months | 6 months | ||||
QUARTER | QUARTER | TO DATE | TO DATE | ||||
30/06/24 | 30/06/23 | 30/06/24 | 30/06/23 | ||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||
RM'000 | RM'000 | RM'000 | RM'000 | ||||
Revenue | 360,872 | 351,193 | 723,645 | 705,507 | |||
Cost of Sales | (244,161) | (243,918) | (480,253) | (510,876) | |||
Gross Profit | 116,711 | 107,275 | 243,392 | 194,631 | |||
Other Income | - | 2,702 | - | 301 | |||
Distribution Expenses | (49,486) | (44,810) | (100,450) | (89,837) | |||
Administrative Expenses | (9,029) | (8,635) | (19,005) | (18,009) | |||
Other Operating Expenses | (27,737) | (22,615) | (57,221) | (40,377) | |||
Results from Operating Activities | 30,459 | 33,917 | 66,716 | 46,709 | |||
Interest Income | 71 | 211 | 133 | 478 | |||
Finance Costs | (1,484) | (1,151) | (2,562) | (2,225) | |||
Profit Before Taxation | 29,046 | 32,977 | 64,287 | 44,962 | |||
Income Tax Expenses | (7,007) | (8,724) | (15,590) | (12,191) | |||
Profit After Taxation | 22,039 | 24,253 | 48,697 | 32,771 | |||
Other Comprehensive Income | - | - | - | - | |||
Changes in fair value of | |||||||
cash flow hedge | |||||||
Deferred tax on fair value of | |||||||
cash flow hedge | |||||||
Profit for the period/Total comprehensive | |||||||
income for the period | 22,039 | 24,253 | 48,697 | 32,771 | |||
Profit Attributable to: | |||||||
Equity holders of the Company | 22,039 | 24,253 | 48,697 | 32,771 | |||
Non-controlling interest | - | - | - | - | |||
22,039 | 24,253 | 48,697 | 32,771 | ||||
EARNINGS PER SHARE | |||||||
- Basic earnings per share (sen) | 34.40 | 37.90 | 76.10 | 51.20 | |||
(Based on 64,000,000 ordinary shares) | |||||||
(The Condensed Statement of Comprehensive Income should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2023)
Page 1
DUTCH LADY MILK INDUSTRIES BERHAD (5063-V)
(Incorporated in Malaysia)
CONDENSED STATEMENT OF FINANCIAL POSITION
For the financial quarter ended 30 June 2024
ASSETS | |
A01. Pr | Property, plant and equipment |
A01. Ri | Right-of-use assets |
A02. In | Intangible assets |
A09. Ot | Other receivables |
A01. De | Deferred tax assets |
TOTAL NON-CURRENT ASSETS | |
A03. In | Inventories |
A04. Tr | Trade and other receivables |
A05. Pr | Prepayments |
A05. Cu | Current tax receivable |
A07. Ca | Cash and cash equivalents |
A06. De | Derivatives financial assets |
CURRENT ASSETS
A08. A Assets classified as held for sale
TOTAL CURRENT ASSETS
TOTAL ASSETS
AS AT
30/06/24
RM'000
(Unaudited)
547,879
5,743
31,264
3,803
2,965
591,654
227,981
118,487
2,996
-
59,492
362
409,318
-
409,318
1,000,972
AS AT
31/12/23
RM'000
(Audited)
503,206
8,473
27,492
1,987
2,220
543,378
241,098
94,343
1,310
-
66,152
595
403,498
-
403,498
946,876
EQUITY
E01. Sh | Share capital |
E02. Re | Retained profits |
Attributable to equity holders of the Company | |
Non-controlling interest | |
TOTAL EQUITY | |
LIABILITIES | |
L07. No | Lease Liabilities |
L01. De | Deferred tax liabilities |
L03. Pr | Provision |
TOTAL NON-CURRENT LIABILITIES | |
L02. Tr | Trade and other payables |
L03. Pr | Provision |
L05. Cu | Current tax liabilities |
L06. Ba | Bank overdraft |
L08. Cu | Lease Liabilities |
L04. De | Derivatives financial liabilities |
L10. Bo | Borrowings |
CURRENT LIABILITIES | |
TOTAL LIABILITIES | |
TOTAL EQUITY AND LIABILITIES | |
Net assets per share attributable to ordinary | |
equity holders of the Company (RM) |
64,000
405,942
469,942
-
469,942
2,727
-
375
3,102
473,588
10,829
10,183
-
4,007
694
28,627
527,928
531,030
1,000,972
7.34
64,000
373,245
437,245
-
437,245
3,994
-
375
4,369
482,094
12,689
1,123
-
6,961
2,395
-
505,262
509,631
946,876
6.83
(The Condensed Statement of Financial Position should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2023)
Page 2
DUTCH LADY MILK INDUSTRIES BERHAD (5063-V)
(Incorporated in Malaysia)
CONDENSED STATEMENT OF CHANGES IN EQUITY
For the financial quarter ended 30 June 2024
(The figures have not been audited)
Attributable | |||||||||
Distributable | to equity | Non- | |||||||
Share | Retained | holders of | Controlling | ||||||
Capital | profits | the Company | Interest | Total | |||||
RM'000 | RM'000 | RM'000 | RM'000 | RM'000 | |||||
6 months | |||||||||
ended 30 June 2024 | |||||||||
Balance at | |||||||||
beginning of period | 64,000 | 373,245 | 437,245 | - | 437,245 | ||||
Movements | |||||||||
during the period | - | 48,697 | 48,697 | - | 48,697 | ||||
Dividend payable | - | - | - | - | - | ||||
Dividends paid | - | (16,000) | (16,000) | - | (16,000) | ||||
Balance at | |||||||||
end of period | 64,000 | 405,942 | 469,942 | - | 469,942 | ||||
TRUE | |||||||||
6 months | |||||||||
ended 30 June 2023 | |||||||||
Balance at | |||||||||
beginning of period | 64,000 | 332,851 | 396,851 | - | 396,851 | ||||
Movements | |||||||||
during the period | - | 32,771 | 32,771 | - | 32,771 | ||||
Dividend payable | - | - | - | - | - | ||||
Dividends paid | - | (16,000) | (16,000) | - | (16,000) | ||||
Balance at | |||||||||
end of period | 64,000 | 349,622 | 413,622 | - | 413,622 | ||||
(The Condensed Statement of Changes in Equity should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2023)
Page 3
DUTCH LADY MILK INDUSTRIES BERHAD (5063-V)
(Incorporated in Malaysia)
CONDENSED STATEMENT OF CASH FLOW
For the financial quarter ended 30 June 2024
6 months | 6 months | ||
TO DATE | TO DATE | ||
30/06/24 | 30/06/23 | ||
(Unaudited) | (Audited) | ||
RM'000 | RM'000 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Cash receipts from customers and other receivables | 697,918 | 672,394 | |
* Cash paid to suppliers and employees | (649,994) | (614,914) | |
Cash generated from operations | 47,924 | 57,480 | |
Income tax paid | (7,275) | (10,581) | |
Penalty paid | - | - | |
Net cash generated from/(used in) operating activities | 40,649 | 46,899 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
* Additions of property, plant and equipment | (50,570) | (63,662) | |
* Additions of intangible assets | (2,716) | (3,418) | |
Assets classified as held for sale | - | - | |
Proceeds from disposal of property, plant and equipment | - | - | |
Proceeds from disposal of asset classified as held for sale | - | - | |
Interest received | 133 | 478 | |
Net cash (used in)/generated from investing activities | (53,153) | (66,602) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Interest paid | (2,386) | (1,971) | |
Dividends paid | (16,000) | (16,000) | |
Payment of principal portion of lease liabilities | (4,397) | (4,277) | |
Increase/(Repayment) of borrowings | 28,627 | - | |
Net cash used in financing activities | 5,844 | (22,248) | |
Net increase/(decrease) in cash and cash equivalents | (6,660) | (41,951) | |
Cash and cash equivalents brought forward | 66,152 | 104,941 | |
Cash and cash equivalents carried forward | 59,492 | 62,990 | |
Cash and cash equivalents consist of: | |||
Cash and bank balances | 59,492 | 62,990 | |
Bank overdraft | - | - | |
Deposits placed with licensed banks | - | - | |
59,492 | 62,990 | ||
*During the financial year, the Company has reclassified non-cash items relating to purchase of property, plant and equipment and trade and other payables. Please refer reclassification on the next page.
(The Condensed Statement of Cash Flows should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2023)
Page 4
- Prior year reclassifications
In the prior financial year, the net cash used in investing activities included the unpaid portion of additions to property, plant and equipment. This has been adjusted in the comparative statement of cash flows. A corresponding adjustment is made to the cash paid to suppliers and employees included in the net cash from operating activities.
The prior year reclassification has no impact on the statement of financial position and statement of profit or loss and other comprehensive income in the current or prior financial year.
Payment for purchase of property, plant and equipment
Quarter ended | Quarter ended | ||
30/06/24 | 30/06/23 | ||
RM'000 | RM'000 | ||
Additions during the year | 56,082 | 67,234 | |
Add: | |||
Unpaid purchase as of prior year | 53,242 | 47,793 | |
Less: | |||
Unpaid and included under accrued expenses | (42,818) | (43,912) | |
Unpaid and included under other payables | (15,936) | (7,452) | |
Payment during the year | 50,570 | 63,662 | |
Payment for purchase of intangible assets | |||
Quarter ended | Quarter ended | ||
30/06/24 | 30/06/23 | ||
RM'000 | RM'000 | ||
Additions during the year | 3,921 | 16,724 | |
Add: | |||
Unpaid purchase as of prior year | 1,004 | 873 | |
Less: | |||
Unpaid and included under accrued expenses | (1,178) | (13,335) | |
Unpaid and included under other payables | (1,032) | (844) | |
Payment during the year | 2,716 | 3,418 |
Notes to the Financial Statements - Pg. 5
Statement of cash flows for quarter ended 30 June 2023
As previously | |||||
reported | Reclassification | Restated | |||
RM'000 | RM'000 | RM'000 | |||
Cash flows from operating activities | |||||
Cash receipts from customers and other | 672,394 | - | 672,394 | ||
receivables | |||||
Cash paid to suppliers and employees | (600,345) | (14,569) | (614,914) | ||
Cash generated from operations | 72,049 | (14,569) | 57,480 | ||
Income tax paid | (10,581) | - | (10,581) | ||
Net cash from operating activities | 61,468 | (14,569) | 46,899 | ||
Cash flows from investing activities | |||||
Purchase of property, plant and | (67,234) | 3,572 | (63,662) | ||
equipment | |||||
Purchase of intangibles assets | (16,724) | 13,306 | (3,418) | ||
Interest received | 478 | - | 478 | ||
Net cash used in investing activities | (83,480) | 16,878 | (66,602) | ||
Cash and cash equivalents consist of: | |||||
Cash and bank balances | 60,681 | 2,309 | 62,990 | ||
Bank overdraft | 2,309 | (2,309) | - | ||
Deposits placed with licensed banks | - | - | - | ||
62,990 | - | 62,990 | |||
Notes to the Financial Statements - Pg. 6
DUTCH LADY MILK INDUSTRIES BERHAD (5063-V)
(Incorporated in Malaysia)
NOTES
-
Basis of Preparation
The interim financial report is unaudited and has been prepared in accordance with the applicable disclosure provisions of the Listing Requirements of the Bursa Malaysia
Securities Berhad and MFRS 134, 'Interim Financial Reporting' in Malaysia and with IAS 34 'Interim Financial Reporting'. They do not include all of the information required for full annual financial statements and should be read in conjunction with the most recent audited financial statements of the Company as at and for the year ended 31 December 2023.
The accounting policies and methods of computation are consistent with those adopted in the most recent audited financial statements for the year ended 31 December 2023. - Auditors' Report of Preceding Annual Financial Statements
The auditors' report of the Company in respect of the annual audited financial statements for the year ended 31 December 2023 was not subject to any audit qualification. - Seasonal and Cyclical Factors
The dairy and dairy related business can be influenced by the weather and major festivals. - Unusual Items affecting Assets, Liabilities, Equity, Net Income or Cash Flows
There were no unusual items affecting assets, liabilities, equity, net income or cash flows during the financial period under review. - Changes in Estimates
Pursuant to the Company's announced investment in our future manufacturing activities,
DLMI has identified assets in its Petaling Jaya factory that will not be transitioned to the new site. In light of this, DLMI has implemented accelerated depreciation for the mentioned assets at the start of 2021 financial year, continuing into 2022, 2023 and 2024.
Other than the aforementioned, there were no other changes in estimates of amounts reported in the current quarter or changes in estimates of amounts reported in prior financial years that have a material effect in the current quarter. - Changes in Debt and Equity
There were no issuances and repayment of debt and equity securities, share buy-backs, share cancellations, shares held as treasury shares and resale of treasury shares for the financial period under review.
Notes to the Financial Statements - Pg. 7
7. Segmental Analysis
The Company operates principally in Malaysia and in one major business segment. As such, only one reportable segment analysis is prepared. The Company's Board of Directors reviews internal management reports at least on a quarterly basis.
Quarter ended | Quarter ended | |
30/06/24 | 30/06/23 | |
RM'000 | RM'000 | |
Segment profit | ||
Revenue | 360,872 | 351,193 |
Profit/(loss) After Taxation | 22,039 | 24,253 |
8. Capital Commitments | ||
As at | As at | |
30/06/24 | 30/06/23 | |
RM'000 | RM'000 | |
Property, plant and equipment | ||
Authorised but not contracted for | 110,761 | 219,957 |
Contracted but not provided for | 61,686 | 139,331 |
- Subsequent Events
There were no material subsequent events that will affect the financial results of the financial period under review. - Changes in Composition of the Company
There were no changes in the composition of the Company during the financial period under review. - Related Party Transactions
The following are significant related party transactions: -
Quarter ended | Quarter ended | |
30/06/24 | 30/06/23 | |
RM'000 | RM'000 | |
Sales to related parties | 230 | 911 |
Purchases from related parties | 180,194 | 117,534 |
Know-how, Trademark License and Management | 10,867 | 11,263 |
Support fees | ||
Shared services from related parties | 4,891 | 1,963 |
Advance payment to related parties | - | - |
These transactions have been entered into in the normal course of business and have been established at arm's length.
Notes to the Financial Statements - Pg. 8
12. Review of Results (Against preceding year corresponding period)
INDIVIDUAL QUARTER | CUMULATIVE QUARTER | |||||
Current | Comparative | Changes | 6 months | 6 months | Changes | |
RM '000 | Quarter | Quarter | TY vs LY | To Date | To Date | TY vs LY |
30/06/24 | 30/06/23 | % | 30/06/24 | 30/06/23 | % | |
Revenue | 360,872 | 351,193 | 2.8% | 723,645 | 705,507 | 2.6% |
Operating Profit (exclude Accelerated Depreciation and one-offs) | 45,187 | 37,747 | 19.7% | 91,074 | 55,605 | 63.8% |
Operating Profit | 30,459 | 33,917 | -10.2% | 66,716 | 46,709 | 42.8% |
Profit Before Interest and Tax | 28,975 | 32,766 | -11.6% | 64,154 | 44,484 | 44.2% |
Profit Before Taxation | 29,046 | 32,977 | -11.9% | 64,287 | 44,962 | 43.0% |
Profit After Taxation | 22,039 | 24,253 | -9.1% | 48,697 | 32,771 | 48.6% |
Attributable to Ordinary Equity Holders of the parent | 22,039 | 24,253 | -9.1% | 48,697 | 32,771 | 48.6% |
*Accelerated depreciation and transition-relatedone-off costs in Q2 2024: RM14.7 million; Q2 2023: RM3.8 million
In the second quarter of 2024, DLMI reported revenue of RM360.9 million, reflecting a growth of 2.8% versus the same period last year. This revenue increase is driven by volume growth and carry-over effect of price increases implemented in 2023, as well as selective pricing on one of the product ranges in 2024 and the mix of products sold. As a market leader, DLMI continues its investments in the Dairy Market and stays committed to its purpose of Nourishing Our Planet and People in Every Stage of Life. In line with this commitment, DLMI strategically prices its products to balance affordability with profitability to always meet consumer needs effectively while maintaining a strong market presence.
Operating profit for this quarter amounted to RM30.5 million, representing a 10.2% decline from the RM33.9 million recorded in the same quarter of the previous year. In line with the earlier announced investment in our future manufacturing activities, DLMI continued the accelerated depreciation of its assets in the Petaling Jaya factory that cannot be transitioned to the new site. As the construction of the state-of-the-art IR4.0 manufacturing and distribution facility in Bandar Enstek progresses, other one-off operating costs related to activities for the construction and transition towards the new site are incurred. The new manufacturing facility was officially inaugurated on 30 May 2024, while full transition of the production is ongoing and expected to finalize in Q3 2024. The production transfer will be followed by the construction of a dedicated Distribution Center at Bandar Enstek to be finalized in H1 2025. The facility in Petaling Jaya will be fully decommissioned in Q4 2024. The reported Operating profit includes costs for accelerated depreciation and one-off expenses totaling RM14.7 million in Q2 2024, a substantial increase from the RM3.8 million cost adjustment reported in Q2 2023.
On a like-for-like basis, operating profit excluding accelerated depreciation and one-off costs stands at RM45.2 million, reflecting a substantial 19.7% increase compared to the same quarter in 2023. This growth is primarily driven by increased revenue and reduced costs of dairy raw materials.
Profit Before Taxation for the quarter amounted to RM29.0 million, compared to RM33.0 million in 2023 as a result of the above-mentioned drivers, whereas Profit After Taxation decreased by RM2.2m to RM22.0 million.
Notes to the Financial Statements - Pg. 9
13. Comments on Material Changes in Profit Before Taxation (Against immediate preceding quarter)
Current | Preceding | Changes | |
RM '000 | Quarter | Quarter | Q1 vs Q4 |
30/06/2024 | 31/03/24 | % | |
Revenue | 360,872 | 362,773 | -0.5% |
Operating Profit (exclude Accelerated Depreciation and one-offs) | 45,187 | 45,887 | -1.5% |
Operating Profit | 30,459 | 36,257 | -16.0% |
Profit Before Interest and Tax | 28,975 | 35,179 | -17.6% |
Profit Before Taxation | 29,046 | 35,241 | -17.6% |
Profit After Taxation | 22,039 | 26,658 | -17.3% |
Attributable to Ordinary Equity Holders of the parent | 22,039 | 26,658 | -17.3% |
*Accelerated depreciation and transition-relatedone-off in Q2 2024: RM14.7 million; Q1 2024: RM9.6 million
The company's revenue for the current period was RM360.9 million, slightly lower by 0.5% compared to Q1 2024. The slight decline in revenue was mainly attributable to lower sales volume driven by seasonal effects and a changing mix of products sold.
Operating profit for this quarter was RM30.5 million, a decrease of 16.0% compared to the previous quarter. In line with the announced investment in our future manufacturing activities, DLMI continued the accelerated depreciation of its assets in the Petaling Jaya factory that cannot be transitioned to the new site. As the progress of construction of the state-of-the-art IR4.0 manufacturing facility in Bandar Enstek progresses, other one-off operating costs related to activities for the construction and transition towards the new site are incurred. The reported operating profit includes costs for accelerated depreciation and one-off costs amounting to RM14.7 million in Q2 2024, compared to RM9.6 million in Q1 2024.
Excluding one-off costs, operating profit decreased slightly by 1.5% (RM0.7 million) compared to Q1 2024. This decline is primarily attributed to higher costs of goods as dairy raw material prices trended upward and the MYR weakened against the USD. At the same time the company remained focused on optimizing operational efficiencies and managing costs.
Profit Before Taxation for the quarter decreased by RM6.2 million to RM29.0 million as a result of the above-mentioned drivers, whereas Profit After Taxation decreased by RM4.6 million to RM22.0 million.
Notes to the Financial Statements - Pg. 10