KUALA LUMPUR (May 19): Malayan Flour Mills Bhd (MFM) (KL:MFLOUR) saw stronger contributions from its joint ventures in the first quarter ended March 31, 2026 (1QFY2026), contributing to a 28.4% rise in net profit for the quarter.
Share of profit from equity-accounted joint ventures surged to RM10.93 million from RM3.25 million previously, supported by improved performance at its 51%-owned poultry joint venture Dindings Tyson Sdn Bhd and a return to profitability at PT Bungasari Flour Mills Indonesia.
Dindings Tyson recorded profit after tax of RM18.41 million against RM7.36 million previously, while PT Bungasari posted profit after tax of RM5.14 million compared to a loss after tax of RM1.66 million a year ago.
As a result, group net profit for 1QFY2026 rose to RM42.48 million from RM33.09 million a year earlier, despite revenue slipping 7.2% to RM741.43 million from RM799.29 million previously.
Earnings per share rose to 3.43 sen from 2.67 sen a year earlier. The board did not recommend any dividend for the quarter under review.
Despite the lower revenue, MFM maintained steady margins, as gross profit margin improved to 11.37% in 1QFY2026 from 9.62% a year earlier, while operating margin rose to 7.24% from 6.33%.
The flour and grain trading segment recorded operating profit of RM53.11 million compared with RM50.91 million a year earlier, supported by higher sales volume and better contribution margin despite higher operating expenditure.
Executive deputy chairman and managing director Teh Wee Chye said the poultry segment continued to gain momentum during the quarter following operational and marketing strategies targeting previously untapped markets.
Looking ahead, he said MFM will remain focused on navigating commodity market volatility and strengthening its core businesses.
"Although the global commodity landscape remains challenging and unpredictable, managing through such market cycles has always been part of our business. Over the years, we have built the operational experience and procurement discipline necessary to navigate volatility while maintaining business resilience," he said in a statement.
"As we move ahead, we remain focused on further strengthening our core businesses to play our role as a food security player in the region, by improving operational efficiencies, and positioning the group to capitalise on opportunities across our markets," Teh added.
Shares of MFM closed up 1.5 sen or 2.65% at 58 sen on Tuesday, bringing its market capitalisation up to RM718.7 million.