KUALA LUMPUR: MSM Malaysia Holdings Bhd (MSM) focuses on sustaining its turnaround plan amidst the rising costs of main production elements, namely raw sugar, freight, natural gas and foreign exchange.

Within a continually challenging environment, the company's key focus for 2021 was on executing the turnaround plan through reorganisation and asset optimisation, staying resilient with strengthened income streams and building integration for sustainable performance.

"For the financial year 2021 (FY21), MSM recorded a revenue of RM2.3 billion with a profit before tax (PBT) of RM81 million on the back of total assets of RM2.87 billion.

"This is an encouraging improvement from 2020 despite the challenges faced throughout the year. MSM also returned to a dividend-paying stock where we declared a dividend of three sen per share for FY21," said group chief executive officer Syed Feizal Syed Mohammad during the 11th annual general meeting held virtually today.

During FY21, gain from the disposal of MSM Perlis Sdn Bhd amounting to RM91.8 million has contributed to MSM Malaysia, recording a total consolidated PBT of RM170 million.

MSM produced close to 900,000 tonnes of refined sugar sold under the 'Gula Prai' brand amidst slower domestic and competitive international markets last year due to the pandemic and movement control orders.

Syed Feizal said MSM Malaysia would increase its domestic market share while opening up new market channels through last-mile general trades, hotels, restaurants and catering (HORECA) and small stock-keeping units (SKU) packaging suited for convenient chains.

"MSM will continue to gain greater market share within the Asia Pacific and penetrate the Singapore retail segment viewed from a domestic lens and logistics strategy.

"We shall also increase volumes of value-added products such as liquid sugar and premix, which have higher margins and great demand in markets like China.

"As part of strengthening Johor, MSM remains open to having a right fit partner with the strong export market and operational experience," he said.

As for FY22, the company foresees greater challenges with rising main production costs.

For the first quarter (Q1), MSM posted a loss after tax (LAT) of RM28 million as compared to a profit after tax (PAT) of RM31 million for Q1 2021.

This was mainly due to higher production costs, increased freight costs, and weaker ringgit.

The company's refining cost also increased by 28 per cent, primarily driven by an 86 per cent increase in gas costs.

Moving forward, the company will further explore a strategic partnership to strengthen the export segment and unlock synergistic value this year to ensure consistent returns and greater shareholder value as the nation's leading premium sugar refiner.