KUALA LUMPUR (Feb 26): Staple foods producer Malayan Flour Mills Bhd (MFM) (KL:MFLOUR) ended the year on a stronger footing, swinging back to profit in the fourth quarter on improved flour sales volumes and a firmer contribution from its poultry joint venture, while formalising a dividend policy to distribute at least 30% of annual net earnings.

Net profit for the three months ended Dec 31, 2025 (4QFY2025) rose to RM43 million from a net loss of RM5.95 million a year earlier. Earnings per share were 3.47 sen versus a loss per share of 0.48 sen previously.

Quarterly revenue increased 7.2% to RM877.6 million from RM818.61 million in 4QFY2024, supported by higher sales volumes in the flour and grain trading (FGT) segment in Malaysia and Vietnam, despite lower average selling prices.

The poultry integration (PI) business, operated via 51%-owned joint venture Dindings Tyson Sdn Bhd, contributed RM6 million in profit during the quarter, up from RM1.2 million a year earlier. The group also recorded a RM1 million share of profit from Indonesian associate PT Bungasari Flour Mills Indonesia, compared with a RM2.8 million share of loss previously.

The group declared a second interim dividend of 2 sen per share for FY2025, payable on March 26, bringing total FY2025 dividends to 3.5 sen per share. The payout of RM43.4 million represents 31% of net profit.

MFM said it has adopted a formal dividend policy to distribute not less than 30% of annual net profit, underscoring its commitment to shareholder returns.

“We have never failed to reward shareholders with dividends since we began as a public listed company in 1968. This year being our 60th anniversary from when we began our flour mill operations in Lumut, it’s timely to set in stone the dividend policy. With this policy, we aim not only to be disciplined in creating sustainable earnings for our business, but also to align ourselves with minority shareholders, in terms of prosperity sharing," said MFM executive deputy chairman cum managing director Teh Wee Chye in a statement.

For the full year, net profit surged 141% to RM139.9 million from RM58.12 million in FY2024, driven by stronger performance in the FGT and PI segments. Revenue rose 4.1% to RM3.25 billion from RM3.12 billion.

MFM said it continues to expand capacity to support long-term growth. In Vietnam, subsidiary Vimaflour is increasing milling capacity to 2,500 tonnes per day from 2,000 tonnes, as the plant operates near full utilisation. The expansion is expected to enhance economies of scale and meet rising domestic and export demand.

Shares in MFM closed down one sen or 1.54% at 64 sen on Thursday, giving it a market capitalisation of RM793 million. The stock has gained 4.92% so far this year.