KUALA LUMPUR (Aug 29): Malayan Flour Mills Bhd (KL:MFLOUR) returned to the black in the second quarter, thanks to better margins at its flour-and-grain business and lower interest expenses.

Net profit for the three months ended June 30, 2024 (2QFY2024) was RM18.8 million, compared to a net loss of RM1.97 million over the same period last year, Malayan Flour Mills said in an exchange filing on Thursday. Revenue for the quarter dipped 0.1% year-on-year to RM751.9 million, from RM752.7 million.

“We are particularly encouraged by the significant” quarter-on-quarter improvement in its poultry segment, said Teh Wee Chye, deputy chairman and managing director of Malayan Flour Mills. The company will focus on exploring new markets for processed chickens to sustain growth, he said.

For its flour-and-grain segment, “we will stay focused on improving the efficiency and capacity utilisation of our flour milling facilities, ensuring a reliable supply of raw materials and uninterrupted operations to meet the increasing demand for flour in Malaysia, Vietnam, and Indonesia,” he said.

The segment, along with the aquafeed business, recorded a profit after tax of RM21.5 million, reversing the loss after tax of RM1.3 million reported in the corresponding quarter last year, driven by improved margins due to lower wheat consumption costs.

Meanwhile, at its poultry division which is operated under the 51%-owned joint venture company Dindings Tyson Sdn Bhd, profit after tax fell to RM8.4 million from 2QFY2023 due to reduced sales volume, lower selling prices, and the discontinuation of the chicken subsidy.

On a quarter-on-quarter basis, the segment reversed from a loss of RM2.4 million in the preceding quarter of 1Q2024, led by higher sales volume and lower input costs.

The company announced an interim single-tier dividend of 1.5 sen per share, to be paid on Sept 27.

For the six months ended June 30, 2024, net profit came in at RM56.7 million, a more-than-seven-time jump from RM8.48 million over the same period last year. However, revenue fell 4.8% year-on-year to RM1.5 billion from RM1.6 billion, mainly due to lower selling prices in the flour and grain business.

Malayan Flour Mills’ shares paused for noon break on Thursday, up one sen or 1.4% to 74.5 sen, giving it a market capitalisation of RM923.2 million.