KUALA LUMPUR (Feb 24): MSM Malaysia Holdings Bhd (KL:MSM) said on Monday its net profit rose 67% in the final quarter of 2024, as lower production costs and net commodity gains helped offset a slight decline in revenue.

Net profit for the three months ended Dec 31, 2024 (4QFY2024) was RM71.69 million, compared with RM42.87 million in the same period a year earlier, MSM said in an exchange filing. The company booked a net commodity gain of RM10.84 million compared to a loss of RM762,000 in 4QFY2023.

Revenue for the quarter fell 0.7% year-on-year to RM943.59 million, due to lower prices despite higher volume.

The sugar industry, however, continued to face prolonged high input costs, with global freight and natural gas prices remaining elevated, MSM said on its prospects for 2025. The company said it will enhance its raw sugar hedging practices as part of a broader risk management strategy.

“MSM will continue its year-on-year growth and profitability with [a] target to return as a dividend-paying stock backed by a dividend policy,” said MSM chief executive officer Syed Feizal Syed Mohammad in a statement.

MSM’s refineries were busier in the fourth quarter with higher capacity utilisation of 64% versus 52% in 4QFY2023 while its efficiency yield improved to 97% in 4QFY2024 compared to 95% a year ago.

For the full year ended Dec 31, 2024 (FY2024), MSM turned around with a net profit of RM31.25 million compared to a net loss of RM49.88 million while its total revenue increased 14.7% to RM3.54 billion.

No dividend was declared for the year.

Included in the revenue was the government incentive after the control ceiling price was kept unchanged.

The industry is working closely with the government to “finalise a sustainable pricing mechanism for the domestic retail segment and to manage imported refined sugar”, Syed Feizal added.

MSM, controlled by FGV Holdings Bhd (KL:FGV) with a 51% stake, is one of only two sugar refiners in Malaysia. The other is Central Sugars Refinery Sdn Bhd owned by billionaire Tan Sri Syed Mokhtar Albukhary.

Shares of MSM were largely unchanged at RM1.45, valuing the company at RM1 billion, following the results announcement during Monday's midday trading break.