Malayan Flour Mills Berhad saw its net profit jumped 96.1% to RM64.1 million in the nine months ended 30 September 2024 (9M24) from RM32.7 million previously, largely due to the continued steady performance in Flour and Grain Trading (FGT) segment in Malaysia and Vietnam during the period.
The FGT segment, along with the Aquafeed business, delivered a profit after tax (PAT) of RM81.3 million in 9M24, a surge of 180.1% from RM29.0 million in the previous period, on a maintained revenue base of RM2.3 billion. The significant profit jump was mainly attributed to higher sales volume and improved margins due to lower wheat costs.
Meanwhile, tis PT Bungasari Flour Mills, MFM's 30% associate in Indonesia, narrowed its loss after tax to RM20.7 million for 9M24, an improvement from a substantial loss of RM71.0 million in the same period last year, supported by higher sales volume with improved margin. Simultaneously, the share of loss from PT Bungasari Flour Mills in Indonesia amounted to RM6.2 million in 9M24, compared to a loss of RM21.3 million in the same period of the previous year.
However, the better results in 9M24 were partially offset by the weaker performance in the Poultry Integration (PI) segment, operated under the 51.0%-owned joint venture Dindings Tyson Sdn Bhd (DTSB). The segment's PAT declined sharply to RM0.8 million in 9M24 from RM55.1 million previously, due to the impact of a boycott against Western-based fast-food chains following the Middle East geopolitical conflict, as well as the discontinuation of chicken subsidy since November 2023.'
For the third quarter ended 30 September 2024 (3Q24), the Group's net profit decreased by 69.7% to RM7.3 million from RM24.2 million, due mainly to the negative joint venture (JV) results from PT Bungasari Flour Mills and the PI segment. Meanwhile, group revenue marginally increased by 3.1% to RM799.2 million in 3Q24 from RM774.9 million previously. PT Bungasari Flour Mills in Indonesia suffered more severely during 3Q24, with a loss after tax increasing to RM34.3 million from RM13.2 million, attributed to weaker demand and reduced margins from flour products. This led to a share of loss of RM10.3 million in 3Q24 from RM4.0 million in the previous year.
The PI segment also reported a weaker performance, recording a loss after tax of RM5.2 million from a PAT of RM14.0 million, as a result of lower selling prices and discontinuation of chicken subsidy.
