MSM returns to the black in 4Q23


MSM group chief executive officer Syed Feizal Syed Mohammad

KUALA LUMPUR: MSM Malaysia Holdings Bhd continues to reinforce its domestic and export market amidst stronger demand and explore other regional market opportunities due to the rising global sugar deficit.

“We will continue to expand our domestic and export markets amidst stronger demand in China, Indonesia and Vietnam and explore other regional market opportunities including hypergrowth economic regions such as Africa due to the rising global sugar deficit,” group chief executive officer Syed Feizal Syed Mohammad said in a statement.

He noted that climate change has caused poor crop production and industry recovery in production to meet demand will take time.

“The growth in the export segment is in alignment with our initiative in further optimising the utilisation of our sugar refineries. However, the group is closely monitoring risks associated with heightening geopolitical tension which may affect the prices of our key input costs and impede our financial performance. Appropriate measures are taken accordingly in risk mitigation,” Syed Feizal said.

MSM returned to the black in the fourth quarter ended Dec 31, 2023, with a net profit of RM42.9mil against a net loss of RM44.2mil in the same period last year, on improved margins and higher capacity utilisation, despite higher production cost.

Revenue for the quarter jumped 40.15% to RM949.8mil from RM677.7mil last year mainly due to the 27% higher average selling price (ASP) and 11% higher sales volume, mainly contributed by 48% increase in export segment.

For the full financial year, MSM posted a smaller net loss of RM49.9mil compared with RM178.7mil last year while revenue rose to RM3.09bil from RM2.56bil previously.

Meanwhile, Syed Feizal said the Joint Sugar Industry is engaging with the Government to finalise a sustainable pricing mechanism for the domestic retail segment to ensure food security and economic sustainability of the local sugar industry.

“Supply to wholesale and retail of the consumer segment made up of 40% of MSM business and the Joint Sugar Industry has requested for an imminent address of the anomaly in sugar retail price of which presently is the lowest in the region.

“Indonesia recently increased retail prices to approximately RM5.80/kg from RM 4.50/kg due to input costs pressures and Philippines retail at an average of RM 8.50/kg,” said Syed Feizal.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

MSM , sugar , Joint Sugar Industry ,

   

Next In Business News

Wall St set for higher open after Friday's sell-off amid Mideast jitters
Goldman Sachs' profit jumps 28% on investment banking strength
Tesla to lay off more than 10% of staff globally as sales fall
EPMB and BAIC ink 10-year vehicle assembly agreement
SCIB and Awana sign new agreement, securing exclusive contract for PPAM Mualim Project
Ringgit closes lower against greenback
Eduspec appoints Kang Pang Kiang as deputy chairman
HeiTech Padu wins RM190mil MySikap contract from JPJ
RHB invests RM3.8mil in Boost Bank, maintains 40% stake
GCAP inks MoU for Pahang hydropower project

Others Also Read