Dutch Lady Milk Industries Berhad : Fourth Quarter Report 2021

DUTCH LADY MILK INDUSTRIES BERHAD (5063-V)

(Incorporated in Malaysia)

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

For the financial quarter ended 31 December 2021

	INDIVIDUAL QUARTER		CUMULATIVE QUARTER
	CURRENT		COMPARATIVE		12 months		12 months
	QUARTER		QUARTER		TO DATE		TO DATE
	31/12/21	31/12/20	31/12/21	31/12/20
	(Unaudited)		(Audited)		(Unaudited)		(Audited)
	RM'000		RM'000		RM'000		RM'000
Revenue	300,396	289,146	1,133,733	1,100,659
Cost of Sales	(190,380)	(191,027)	(734,030)	(743,582)
Gross Profit	110,016	98,119	399,703	357,077
Other Income	155,269	2	162,612	6,518
Distribution Expenses	(36,338)	(42,497)	(159,273)	(155,875)
Administrative Expenses	(6,243)	(7,480)	(28,030)	(30,850)
Other Operating Expenses	(24,551)	(20,332)	(88,530)	(76,869)
Results from Operating Activities	198,153	27,812	286,482	100,001
Interest Income	764	163	1,417	683
Finance Costs	(1,066)	(800)	(3,374)	(3,173)
Profit Before Taxation	197,851	27,175	284,525	97,511
Income Tax Expenses	(14,393)	(7,019)	(36,525)	(24,148)
Profit After Taxation	183,458	20,156	248,000	73,363
Profit for the period/Total comprehensive
income for the period	183,458	20,156	248,000	73,363
Profit Attributable to:
Equity holders of the Company	183,458	20,156	248,000	73,363
Non-controlling interest	-	-	-	-
	183,458	20,156	248,000	73,363
EARNINGS PER SHARE
- Basic earnings per share (sen)	286.70	31.50	387.50	114.60
(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 2020)

Page 1

DUTCH LADY MILK INDUSTRIES BERHAD (5063-V)

(Incorporated in Malaysia)

CONDENSED STATEMENT OF FINANCIAL POSITION

For the financial quarter ended 31 December 2021

		AS AT		AS AT
		31/12/21	31/12/20
		RM'000		RM'000
		(Unaudited)		(Audited)
	ASSETS
A01. Pr	Property, plant and equipment
206,028		199,721
A01. Ri	Right-of-use assets	4,584		9,732
A02. In	Intangible assets	8,469		957
	TOTAL NON-CURRENT ASSETS
	219,081		210,410
A03. In	Inventories
161,055		151,016
A04. Tr	Trade and other receivables	76,381		81,501
A05. Pr	Prepayments	126,157		311
A07. Ca	Cash and cash equivalents	118,300		55,605
A06. De	Derivatives financial assets	258		2
	Deferred tax assets
	CURRENT ASSETS
	482,151		288,435
A08. A Assets classified as held for sale	-		-
	TOTAL CURRENT ASSETS
	482,151		288,435
	TOTAL ASSETS	701,232	498,845
	EQUITY
E01. Sh	Share capital
64,000		64,000
E02. Re	Retained profits	318,580		102,580
	Attributable to equity holders of the Company
	382,580		166,580
	Non-controlling interest	-		-
	TOTAL EQUITY
	382,580		166,580
	LIABILITIES
L07. No	Lease Liabilities
6,652		3,590
L01. De	Deferred tax liabilities	5,968		4,494
	TOTAL NON-CURRENT LIABILITIES
	12,620		8,084
L02. Tr	Trade and other payables
282,795		295,492
L03. Pr	Provision	106		228
L05. Cu	Current tax liabilities	14,486		6,723
L06. Ba	Bank overdraft	-		16,705
L08. Cu	Lease Liabilities	8,487		2,893
L04. De	Derivatives financial liabilities	158		2,140
	CURRENT LIABILITIES
	306,032		324,181
	TOTAL LIABILITIES	318,652	332,265
	TOTAL EQUITY AND LIABILITIES	701,232		498,845
	Net assets per share attributable to ordinary	5.98	2.60
	equity holders of the Company (RM)

(The Condensed Statement of Financial Position should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2020)

Page 2

DUTCH LADY MILK INDUSTRIES BERHAD (5063-V)

(Incorporated in Malaysia)

CONDENSED STATEMENT OF CHANGES IN EQUITY

For the financial quarter ended 31 December 2021

(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
12 months
ended 31 December 2021
Balance at
beginning of period	64,000	102,580	166,580	-	166,580
Movements
during the period	-	248,000	248,000	-	248,000
Dividend payable	-	-	-	-	-
Dividends paid	-	(32,000)	(32,000)	-	(32,000)
Balance at
end of period	64,000	318,580	382,580	-	382,580
					FALSE
12 months
ended 31 December 2020
Balance at
beginning of period	64,000	80,417	144,417	-	144,417
Movements
during the period	-	73,363	73,363	-	73,363
Dividend payable	-	-	-	-	-
Dividends paid	-	(25,600)	(25,600)	-	(25,600)
Balance at
end of period	64,000	128,180	192,180	-	192,180

(The Condensed Statement of Changes in Equity should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2020)

Page 3

DUTCH LADY MILK INDUSTRIES BERHAD (5063-V)

(Incorporated in Malaysia)

CONDENSED STATEMENT OF CASH FLOW

For the financial quarter ended 31 December 2021

	12 months		12 months
	TO DATE		TO DATE
	31/12/21	31/12/20
	(Unaudited)		(Audited)
	RM'000		RM'000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers and other receivables	1,138,597	1,143,739
Cash paid to suppliers and employees	(1,126,132)	-972,074
Cash generated from operations	12,465	171,665
Income tax paid	(27,288)	-27,388
Net cash generated from/(used in) operating activities	(14,823)	144,277
CASH FLOWS FROM INVESTING ACTIVITIES
Additions of property, plant and equipment	(53,922)	-92,635
Additions of intangible assets	(7,770)	-593
Proceeds from disposal of property, plant and equipment	194,001	137
Proceeds from disposal of asset classified as held for sale	-	0
Interest received	1,417	683
Net cash (used in)/generated from investing activities	133,726	-92,408
CASH FLOWS FROM FINANCING ACTIVITIES
Interest paid	(2,853)	-2,922
Dividends paid	(32,000)	-51,200
Payment of principal portion of lease liabilities	(4,650)	-3,655
Net cash used in financing activities	(39,503)	(57,777)
Net increase/(decrease) in cash and cash equivalents	79,400	(5,908)
Cash and cash equivalents brought forward	38,900	44,808
Cash and cash equivalents carried forward	118,300	38,900
Cash and cash equivalents consist of:
Cash and bank balances	118,300	55,605
Bank overdraft	-	-16,705
Deposits placed with licensed banks	-	-
	118,300	38,900

(The Condensed Statement of Cash Flows should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2020)

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 2020.
   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 2020.
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 2020 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
   On 1 October 2021, the Company completed the disposal of its existing manufacturing land and buildings at Petaling Jaya for a total cash consideration of RM200.0 million. The Company subsequently leased back the same properties for a term of 27 months.
   Accordingly, the Company derecognised the related land and buildings (classified as right- of use asset and property, plant and equipment respectively) and recognised a right-of- use asset measured at the proportion of the previous carrying amount that is retained for use by the Company.
   The gain recognised in the profit or loss for the disposal of the property is RM 154.7 mln.
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 started to perform accelerated depreciation for the mentioned assets at the start of the financial year.
   Other than the afore-mentioned, 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.

Notes to the Financial Statements - Pg. 5