KUALA LUMPUR (Aug 27): Staple food producer Malayan Flour Mills Bhd (MFM) (KL:MFLOUR) saw its second-quarter net profit jump 53% year-on-year, thanks to better margins in its flour and grain trading business and stronger contributions from its joint ventures (JV).

Share of profit from equity-accounted joint ventures more than quadrupled to RM13.38 million from RM3.16 million a year earlier, underpinned by stronger results at its 51%-owned poultry unit Dindings Tyson Sdn Bhd and 30%-owned PT Bungasari Flour Mills Indonesia.

As a result, net profit for the three months ended June 30, 2026 (2QFY2026) rose to RM42.93 million from RM28.07 million a year earlier. Earnings per share increased to 3.46 sen from 2.27 sen previously, its bourse filing on Thursday showed.

Revenue was little changed at RM798.66 million versus RM800.23 million a year earlier, as lower selling prices offset higher sales volumes in the flour and grain trading segment.

The segment's operating profit rose 13.6% to RM51.8 million from RM45.6 million, supported by higher sales volumes and better contribution margins, although this was partly offset by higher operating expenses.

MFM declared a first interim dividend of two sen per share, up from 1.5 sen a year earlier, payable on Sept 25. 

For the first half ended June 30, 2026 (1HFY2026), the group's net profit rose 39.7% to RM85.41 million from RM61.16 million a year earlier, despite revenue declining 3.7% to RM1.54 billion from RM1.60 billion.

“With all our key businesses moving in the same direction, we enter 2HFY2026 with a focus on converting this momentum into sustainable earnings,” MFM executive deputy chairman cum managing director Teh Wee Chye said in a statement.

Looking ahead, the group said commodity prices of wheat and grain remain volatile and continue to be impacted by the persistent uncertainties in the macroeconomic and geopolitical landscape.

“Nevertheless, the group continues to take proactive measures including securing supply in advance, closely monitoring price movements and optimising logistics arrangements,” it said.

The group added that it is also diversifying its sources of wheat, corn and soya meal, while adjusting selling prices in response to commodity-price movements.

For its poultry business, MFM said global outbreaks of highly pathogenic avian influenza could disrupt day-old chick supplies, while the domestic industry remains exposed to imported feed costs, geopolitical conflicts, utility costs, disease outbreaks and shifts in consumer spending.

Despite the uncertainties, MFM said it remains optimistic about its performance for FY2026 as it pursues operational and digital initiatives, including integrated business planning across demand, supply, production and financial planning.
 
Shares in MFM closed half a sen or 0.73% higher at 69 sen on Thursday, giving it a market capitalisation of RM855 million. The stock has gained 13.11% so far this year.