3 Things That Investors Should Know About Dutch Lady Milk Industries

Dutch Lady Milk Industries Bhd (KLSE: 3026.KL; KLSE: DLADY.KL) is a Malaysia-based dairy company.

The Company manufactures and distributes a range of dairy products. It offers specially-formulated powders for infants and growing children, liquid milk in different packaging formats and yoghurts.

Sustainable growth in revenue and profit for the last 10 years

One of key component that investors might look for in a company is sustainable growth. Dutch Lady could fit that description.

Since 2006, revenue and profit have grown from RM 514 million and RM 43 million, respectively, to RM 1 billion and RM 141 million, respectively.

Put another way, revenue has grown by 7.7% compounded, whilst profit has grown by 14.1% compounded during the period.

Historical dividend payments

In the last 10 years, Dutch Lady has paid out dividend each year, raising the dividend per share from RM 63.2 cents in 2006 to RM 140.8 cents in 2015.

The consistent dividend payment record indicates that Dutch Lady could continue to pay dividend for the foreseeable future.

At today’s price of RM 62.80, dividend yield is 2.2%.

Majority shareholders

Dutch lady is 50.96% owned by a major shareholder – Frieslandcampina.

Frieslandcampina is one of the world’s largest dairy cooperatives owned by 19,000 dairy farmers across Netherland, Germany and Belgium. With annual revenue of 11.3 billion euro Frieslandcampina is one of the world’s largest dairy companies, with products sold in more than 100 countries.

Thus, having such organisation as its major shareholders could give Dutch Lady better purchasing power, management know how and product innovation.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.