KUALA LUMPUR: MSM Malaysia Holdings Bhd
reported a significant turnaround in profitability in the fourth quarter of its financial year, underpinned by lower production costs.
In a statement, the producer of Gula Prai refined sugar said it registered a net profit of RM71.7mil, a jump up from RM42.87mil in the year-ago quarter, which translates to an earnings per share of 10.2 sen compared to 6.1 sen previously.
The group's revenue during the quarter was slightly lower at RM943.6mil compared to RM949.88mil in 4QFY23 due to lower average selling price (ASP), and despite a 11% jump in sales volume from strong demand in the domestic and export market.
Additionally, the group achieved higher capacity utilisation of 64% in 4QFY24 compared to the 4QFY23 of 52% and better improvement in efficiency yield to 97% in 4QFY2024 compared to 95% in 4QFY23.
Over the full financial year, MSM swung to the black with a net profit of RM31.25mil compared to a net loss of RM49.88mil in FY23. Revenue in FY24 rose to RM3.54bil from RM3.09bil in the previous year.
"MSM’s profitability is a result of stronger operational performance driving cost efficiencies as targeted," said group CEO Syed Feizal Syed Mohammad.
He said the sugar industry continues to face prolonged high input costs, with global freight and natural gas prices remaining elevated.
"Additionally, raw sugar prices are volatile due to fluctuations in global production volumes.
"To mitigate these risks, MSM continues to enhance our raw sugar hedging practices as part of broader risk management strategy."
"MSM will continue its year-on-year growth and profitability with target to return as a dividend paying stock backed by a dividend policy,” said Syed Feizal.
