MFM returns to the black in 3Q, positive on prospects

TheEdge Thu, Nov 14, 2019 10:34am - 4 years View Original


KUALA LUMPUR: Malayan Flour Mills Bhd (MFM) returned to the black with a net profit of RM20.7 million for the third quarter (3Q) ended Sept 30, 2019, from a net loss of RM5.19 million for the same quarter a year ago, thanks to higher sales in its flour and grains trading segment, as well as its poultry integration segment.

Quarterly revenue rose 9.1% to RM701.21 million from RM642.75 million, its stock exchange filing yesterday showed.

Under its flour and grains trading segment, sales grew 11.7% while operating profit jumped 43.4% to RM25.2 million from RM17.5 million, driven by higher selling prices.

Its poultry integration segment, meanwhile, recorded a 2.5% sales increase and an operating profit of RM7.5 million, versus an operating loss of RM13.2 million previously.

MFM said the poultry integration segment’s return to profit was due to higher margin due to improved live birds’ prices and lower production costs, while broiler production volume was slightly higher as day-old-chicks production volume rose.

The group also recognised a profit of RM1.6 million from its Indonesian joint venture (JV), versus a loss of RM2.9 million last year.

As such, its cumulative nine months’ profit ballooned to RM39.99 million, about 34 times the RM1.18 million it achieved last year, while revenue grew 12% to RM1.96 billion, from RM1.75 billion.

The improved cumulative earnings were due to a better operating profit at its flour and grains trading segment — which about doubled to 69.6 million from RM35.1 million last year — on higher margins from higher prices. The group also recognised a profit of RM11.7 million from its JV, as opposed to a loss of RM7.9 million.

On prospects, MFM’s board expects the group’s performance in 2019 to remain favourable, despite volatile commodity prices and foreign exchange rates, and a competitive market environment.

MFM shares closed unchanged at 72 sen yesterday, bringing its market capitalisation to RM722.49 million. In the past one year, the stock has retreated about 11%.

The content is a snapshot from Publisher. Refer to the original content for accurate info. Contact us for any changes.






Related Stocks

MFLOUR 0.660

Comments

Login to comment.