PETALING JAYA, May 30- Dairy products manufacturer, Dutch Lady Milk Industries Bhd, has doubled its capital expenditure (Capex) to RM20 million this year to upgrade its factory here with an additional manufacturing line, Managing Director Rahul Colaco said.
He said to remain the leader in the dairy products segment, the company has to ensure an efficient factory.
Colaco was speaking to the media after the company’s annual general meeting today.
“We’re not only competing with dairy companies, but also other beverage manufacturers,” he said, adding, Dutch Lady’s market share had improved to 19.3 per cent this year from 18.6 per cent in 2012.
Commenting on the volatile prices of raw materials driven by drought in New Zealand, the company sees an increase of between 25 and 30 per cent this year when compared to the end of 2012.
“While we will try to keep prices low, some products such as specially formulated powder for children and family milk beverages, will see a slight increase of five per cent,” he said.
On the company’s outlook for this year, Colaco said Dutch Lady was very optimist and on track to achieving its RM1 billion sales target.
In the last financial year, the company’s pre-tax profit rose by 17 per cent to RM165.801 million from RM141.553 previously.
The company’s pre-tax profit for the first quarter ended March 31,2013, rose 5.6 per cent to RM39.2 million from RM37.1 million previously.
Revenue, however, declined to RM206.3 million from RM214 million.
– BERNAMA
