MSM swings back to profitability in 3Q with RM96.9m net profit


MSM Malaysia Holdings Bhd has swung back into profitability with a net profit of RM96.86 million for the third quarter (3Q) ended Sept 30, 2021, from a net loss of RM71.21 million in the same period last year. 

“The current period profit includes a RM6.29 million gain on disposal of MSM Perlis Sdn Bhd and a gain of RM30.96 million from liquidation of excess raw sugar hedges,” the country’s leading refined sugar producer said in an exchange filing today. 

However, MSM said its revenue slipped to RM548.65 million from RM594.55 million previously, dragged by lower total sales volume in the current period due to prolonged travel restrictions and reduced social gatherings. 

For the cumulative nine-month period ended Sept 30, 2021, the company registered a net profit of RM141.51 million versus a net loss of RM127.47 million, while revenue widened to RM1.62 billion from RM1.55 billion previously. 

In a separate statement, MSM said that its Johor facility is on track with the completion of its second boiler rectification work. 

“MSM Johor’s production capacity stays at one million metric tonnes per annum and continues to record significant improvements. 

“Progressively, MSM Johor is expected to achieve its targeted utilisation factor rate of 50% by the end of 2021 and improve its financial performance in 2022 with projected profitability,” it said. 

Group CEO Syed Feizal Syed Mohammad said the company remained cautiously optimistic on its turnaround plan and the ability to achieve sustainable growth amidst the rising trend of global raw sugar prices. 

“The group is working towards improving its efficiency and remains positive of its full-year target performance,” he said, adding that the company is currently focusing on improving its yield and capacity utilisation to lower refining and production costs.