KUALA LUMPUR (Feb 27): Malayan Flour Mills Bhd or MFM (KL:MFLOUR) narrowed its net loss in the fourth quarter ended Dec 31, 2024 (4QFY2024), as slightly improved revenue was helped by the absence of fair value loss on adjustment of receivables.
For the quarter under review, net loss was reduced by 84.9% to RM5.95 million, from the RM39.36 million loss incurred in 4QFY2023, MFM showed in a bourse filing on Thursday.
Excluding a RM42.07 million impairment loss on the PT Bungasari Flour Mills Indonesia joint venture (JV) recognised in 4QFY2024, MFM would have posted an adjusted net profit of RM36.11 million for the quarter.
Quarterly revenue rose 3.0% year-on-year (y-o-y) to RM818.61 million, supported by higher sales volume of the flour and grain trading business, despite lower selling prices.
For the full FY2024, MFM swung back to profitability, recording a net profit of RM58.12 million, reversing from a net loss of RM6.68 million in FY2023.
However, annual revenue slipped 0.9% y-o-y to RM3.12 billion, as lower selling prices of the flour and grain trading segment weighed on top line growth.
The board declared total dividends of three sen per share for FY2024 — similar to FY2023 — comprising two interim dividends of 1.5 sen each, amounting to RM37.17 million.
The company also completed the full conversion of its redeemable convertible unsecured loan stocks (RCULS) during the year, enlarging its share capital base to 1.24 billion shares.
The flour and grain trading segment remained the key profit contributor, with operating profit rising 46.6% y-o-y to RM183.78 million in FY2024.
Meanwhile, the poultry integration business under Dindings Tyson Sdn Bhd posted a smaller profit of RM1.58 million, down sharply from RM25.88 million in the previous year, as lower market prices and subsidy discontinuation offset higher sales volume.
PT Bungasari, the group’s 30% Indonesian JV, continued to incur losses for the third consecutive year, though the after-tax loss of RM30.01 million for FY2024 was an improvement from the RM66.49 million loss in FY2023.
Looking ahead, MFM executive deputy chairman cum managing director Teh Wee Chye said the group remains focused on expanding its poultry business into new markets and driving product innovation, while leveraging the anticipated demand growth for its core flour business.
"The new financial year (FY2025) started on a positive note, especially for our flour milling business in Malaysia and Vietnam. While wheat prices are stable now, demand for flour continues to be strong," he said in a separate statement.
"For that reason, our new 600 metric-ton-per-day milling line in Lumut, Perak, expected to be commissioned soon, is very timely to not only meet the unabated consumer demand, but also improve our financials further," Teh added.