Malayan Flour Mills Bhd (MFM) posted a net loss of RM5.19 million in the third quarter ended Sept 30, 2018 (3Q18) against RM23.51 million net profit a year ago due to high operating losses incurred in its poultry integration among others.
In an exchange filing yesterday, the company reported a RM13.2 million operating loss in poultry integration in the quarter as compared to an operating profit of RM9.1 million in 3Q17.
The operating loss was mainly due to lower production volume and margins arising from depressed live bird prices in 3Q18, higher net fair value loss on biological assets of RM7.8 million in the quarter as compared to RM4.0 million in 3Q17 as well as the lower net realised and unrealised gain on future and option contracts of RM300,000 during the three months as compared to RM5.0 million in 3Q17.
In addition, MFM recorded a loss of equity from a joint venture in Indonesia amounting to RM2.9 million in the quarter, as compared to a share of profit of RM3.4 million in 3Q17 as well as higher net interest expense. Revenue for the three months increased to RM642.75 million from RM630.97 million in 3Q17 due to higher sales recorded in flour and grains trading.