MSM records marginal growth in Q2

KUALA LUMPUR: MSM Malaysia Holdings Bhd, the country’s largest refined sugar producer, recorded marginal earnings growth to RM79.1mil in its second quarter ended June 30 from a year ago despite facing headwinds in the form of a stronger greenback; a contributing factor as it procures raw sugar in US dollars.

But according to group chief executive officer Datuk Dr Sheikh Awab Sheikh Abod, the foreign-exchange loss was buffered to a certain extent by low raw sugar prices and its hedging strategy that should last until September. MSM, which controls 64% of the country’s sugar supply, only saw a 0.5% increase in earnings on the back of lower revenue that fell by 1.2% to RM588.3mil.