KUALA LUMPUR (Nov 20): Shares of Malayan Flour Mills Bhd (KL:MFLOUR), or MFM, sank on Wednesday morning to their lowest in 10 months, after the company reported a nearly 70% drop in net profit in its third quarter.
MFM fell five sen or nearly 8% to 58 sen at noon break, the lowest since January 2024.
At 58 sen, the group's market capitalisation is RM718 million. Trading volume totalled 1.8 million shares so far.
On Tuesday, MFM reported that its net profit for the third quarter ended Sept 30, 2024 (3QFY2024) plummeted 69.7% to RM7.34 million, from RM24.2 million in the same quarter last year.
The group attributed the plunge in net profit mainly to bigger losses at PT Bungasari Flour Mills Tbk and the performance of its poultry integration segment through Dindings Tyson Sdn Bhd, which turned a loss, compared with a profit last year.
Revenue for the quarter, however, grew 3.1% to RM799.2 million, from RM774.9 million previously, supported by steady demand in its flour and grain trading segments.
Touching on prospects, the group noted that wheat and grain commodity prices remain volatile, influenced by ongoing uncertainties in macroeconomic conditions and geopolitical factors.
“The group will continue to monitor the impact of commodity prices arising from the global supply and demand dynamics and adjust selling prices accordingly and to diversify the sources of wheat, corn and soybean meal,” it added.