Dutch Lady Milk Industries : Second Quarter Report 2023

DUTCH LADY MILK INDUSTRIES BERHAD (5063-V)

(Incorporated in Malaysia)

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

For the financial quarter ended 30 June 2023

	INDIVIDUAL QUARTER	CUMULATIVE QUARTER
	CURRENT	COMPARATIVE	6 months		6 months
	QUARTER		QUARTER	TO DATE		TO DATE
	30/06/23	30/06/22		30/06/23	30/06/22
	(Unaudited)		(Unaudited)	(Unaudited)		(Unaudited)
	RM'000		RM'000	RM'000		RM'000
Revenue	351,193	340,090		705,507	639,955
Cost of Sales	(243,918)		(242,347)		(510,876)		(440,366)
Gross Profit	107,275	97,743		194,631	199,589
	-
Other Income	2,702	3,476		301	2,444
	-
Distribution Expenses	(44,810)	(40,197)		(89,837)	(82,017)
	-
Administrative Expenses	(8,635)	(9,057)		(18,009)	(16,923)
	-
Other Operating Expenses	(22,615)	(23,002)		(40,377)	(46,297)
Results from Operating Activities	33,917	28,963		46,709	56,796
Interest Income	211	408		478	837
Finance Costs	(1,151)	(848)		(2,225)	(1,684)
Profit Before Taxation	32,977	28,523		44,962	55,949
Income Tax Expenses	(8,724)	(6,992)		(12,191)	(13,849)
Profit After Taxation	24,253	21,531		32,771	42,100
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	24,253	21,531		32,771	42,100
Profit Attributable to:
Equity holders of the Company	24,253	21,531		32,771	42,100
Non-controlling interest	-	-		-	-
	24,253	21,531		32,771	42,100
EARNINGS PER SHARE
- Basic earnings per share (sen)	37.90	33.60		51.20	65.80
(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 2022)

Page 1

DUTCH LADY MILK INDUSTRIES BERHAD (5063-V)

(Incorporated in Malaysia)

CONDENSED STATEMENT OF FINANCIAL POSITION

For the financial quarter ended 30 June 2023

ASSETS

Property, plant and equipment

Right-of-use assets

Intangible assets

TOTAL NON-CURRENT ASSETS

Inventories

Trade and other receivables

Prepayments

Current tax receivable

Cash and cash equivalents

Derivatives financial assets

Deferred tax assets

CURRENT ASSETS

Assets classified as held for sale

TOTAL CURRENT ASSETS TOTAL ASSETS

AS AT

30/06/23

RM'000

(Unaudited)

397,204

11,242

29,760

438,206

224,005

126,047

2,725

4,311

60,681

4,777

422,546

-

422,546

860,752

AS AT

31/12/22

RM'000

(Audited)

344,202

3,046

13,181

360,429

228,882

97,708

45,887

6,327

104,941

-

483,745

-

483,745

844,174

EQUITY
Share capital
64,000
Retained profits	349,623
Attributable to equity holders of the Company
413,623
Non-controlling interest	-
TOTAL EQUITY
413,623
LIABILITIES
Lease Liabilities
6,735
Deferred tax liabilities	1,917
Provision	11,075
TOTAL NON-CURRENT LIABILITIES
19,727
Trade and other payables
418,044
Provision	707
Current tax liabilities	-
Bank overdraft	-
Lease Liabilities	8,389
Derivatives financial liabilities	262
CURRENT LIABILITIES
427,402
TOTAL LIABILITIES	447,129
TOTAL EQUITY AND LIABILITIES	860,752
Net assets per share attributable to ordinary	6.46
equity holders of the Company (RM)

64,000

332,851

396,851

-

396,851

2,093

2,322

9,201

13,616

413,688

8,710

-

-

6,498

4,811

433,707

447,323

844,174

6.20

(The Condensed Statement of Financial Position should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2022)

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 2023

(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 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
					FALSE
6 months
ended 30 June 2022
Balance at
beginning of period	64,000	318,580	382,580	-	382,580
Movements
during the period	-	20,569	20,569	-	20,569
Dividend payable	-	-	-	-	-
Dividends paid	-	-	-	-	-
Balance at
end of period	64,000	339,149	403,149	-	403,149

(The Condensed Statement of Changes in Equity should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2022)

Page 3

DUTCH LADY MILK INDUSTRIES BERHAD (5063-V)

(Incorporated in Malaysia)

CONDENSED STATEMENT OF CASH FLOW

For the financial quarter ended 30 June 2023

	6 months		6 months
	TO DATE		TO DATE
	30/06/23	30/06/22
	(Unaudited)		(Audited)
	RM'000		RM'000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers and other receivables	672,394	610,129
Cash paid to suppliers and employees	(600,345)	(528,723)
Cash generated from operations	72,049	81,406
Income tax paid	(10,581)	(11,486)
Net cash generated from/(used in) operating activities	61,468	69,920
CASH FLOWS FROM INVESTING ACTIVITIES
Additions of property, plant and equipment	(67,234)	(88,153)
Additions of intangible assets	(16,724)	(2,092)
Proceeds from disposal of property, plant and equipment	-	0
Proceeds from disposal of asset classified as held for sale	-	0
Interest received	478	837
Net cash (used in)/generated from investing activities	(83,480)	(89,408)
CASH FLOWS FROM FINANCING ACTIVITIES
Interest paid	(1,971)	(1,549)
Dividends paid	(16,000)	(16,000)
Payment of principal portion of lease liabilities	(4,277)	(4,456)
Net cash used in financing activities	(22,248)	(22,005)
Net increase/(decrease) in cash and cash equivalents	(44,260)	(41,493)
Cash and cash equivalents brought forward	104,941	118,300
Cash and cash equivalents carried forward	60,681	76,807
Cash and cash equivalents consist of:
Cash and bank balances	60,681	76,807
Bank overdraft	2,309	0
Deposits placed with licensed banks	-	-
	62,990	76,807

(The Condensed Statement of Cash Flows should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2022)

Page 4

DUTCH LADY MILK INDUSTRIES BERHAD (5063-V)

(Incorporated in Malaysia)

NOTES

1. 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 2022.
   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 2022.
2. 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 2022 was not subject to any audit qualification.
3. Seasonal and Cyclical Factors
   The dairy and dairy related business can be influenced by the weather and major festivals.
4. 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.
5. 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 and 2023.
   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.
6. 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. 5