Malayan Flour Mills posts improved 2Q on disposal gain

KUALA LUMPUR: Malayan Flour Mills Bhd posted a net profit of RM128.31mil in the second quarter ended June 30, 2021, compared to a net loss of RM4.48mil in the previous corresponding quarter on the back of a one-off gain from the disposal of equity in DTSB Group.

On Feb 2, the group incorporated DTSB and entered into a share transfer agreement to transfer its poultry, feed milling and poultry processing units into the company. The financial results of DTSB was disclosed as a discontinued operation in the quarter ended June 30, 2021.

"Apart from the results from the discontinued operation, there was a one-off disposal gain of RM126.2 million recorded on May 31, 2021,” the group said in a filing with Bursa Malaysia.

In the quarter under review, Malayan Flour Mills' recorded revenue of RM576.2mil was 9.6% higher than RM525.5mil in the same quarter last year due to higher sales in the flour and grains trading and aqua feed milling segments.

Operating profit in the quarter was RM37.8mil, an increase of 15.6% year-on-year (y-o-y) due to improvements in the flour and grains trading segment.

Meanwhile, the aqua feed milling segment's operating loss widened slightly to RM1.4mil in Q2 from an operating loss of RM400,000 in the same quarter last year.

The group's share of loss in equity accounted joint ventures in the quarter was RM10.5mil, mostly attributable to its 51% remaining stake in DTSB.

Pre-tax profit in Q2 was RM34.1mil, 7.5% lower than RM36.9mil a year earlier.

Moving forward, Malayan Flour Mills expects its performance in 2021 to remain profitable despite the ongoing uncertainties.

"The Board looks forward to the positive effect of the partnership with Tyson International Holding Company on the poultry integration business," it said in a filing with Bursa Malaysia.