PETALING JAYA: Amid a lower turnover, MSM Malaysia Holdings Bhd
returned to profitability in its second quarter of financial year 2026 (2Q26).
The producer of Malaysia’s leading refined sugar brand “Gula Prai” noted that tighter cost controls and stronger margins helped offset weaker selling prices and sales volume.
According to MSM group chief executive officer Aini Shahar, the group’s immediate focus is to preserve margins and sustain profitability.
“We have prioritised higher-margin sales, aligned production with demand and maintained tight cost discipline,” she said in a statement.
In 2Q26, the group’s net profit climbed to RM23mil after recovering from its RM30mil loss recorded a year earlier.
“Revenue concurrently fell 25.2% to RM608mil from RM813mil in 2Q25, primarily due to lower average selling prices (ASPs) and sales volume,” MSM highlighted.
For the first half of financial year 2026 (1H26), the group reported a net profit of RM5mil, compared with a net loss of RM26mil in the corresponding period last year.
Total revenue, on the other hand, stood at RM1.16bil, compared with RM1.56bil in 2H25, also due to lower ASP and lower sales volume.
Furthermore, Aini added that while its 2Q26 profitability represented an improvement, revenue and utilisation remained below the corresponding period last year amid a persistently challenging operating environment.
MSM said its utilisation factor stood at 39% in its 1H26, compared with 48% in the previous year.
On that note, the group said its more favourable sales mix, focused on higher-margin products, led to an improvement in gross profit margin year-on-year while mitigating the impact of lower ASPs.
“We will continue to prioritise higher-margin products in the domestic market while optimising our product mix and sales strategy,” Aini said.
At the same time, MSM highlighted that lower raw sugar prices, favourable foreign-exchange movements and lower freight costs continued to benefit the group.
Looking ahead, the group expects the sugar industry to remain challenging for the remainder of 2026, with continued cost pressures and competition from imported sugar in the domestic market weighing on margins.
The group said it retains its measured approach to protect margins, strengthen cost discipline and deliver operational efficiency.
“Maintaining profitability will depend on continued discipline and our ability to respond to market and cost pressures,” Aini said.
