August 29, 2025

 

Malayan Flour Mills Q2 profit jumps on flour, grain trading and Indonesian joint venture 

 

 

Malayan Flour Mills Bhd recorded a 49.1% increase in second-quarter net profit, fueled by strong flour and grain trading and a turnaround to profitability at its Indonesian joint venture, PT Bungasari Flour Mills.

 

 For the quarter ended June 30, 2025 (2QFY2025), the group's net profit rose to RM28.07 million from RM18.83 million (US$6.63 million) in 2QFY2024, its bourse filing showed. Revenue climbed 6.43% to RM800.23 million (US$189.13 million) from RM751.9 million (US$177.71 million). The group declared a first interim dividend of 1.5 sen per share, to be paid on Sept 25.

 

Its flour, grain, and aquafeed (FGT) segment generated a profit after tax of RM30.6 million (US$7.23 million) in Q2FY2025, up 42.4% from RM21.5 million (US$5.08 million) in 2QFY2024.

 

Its Indonesian joint venture, PT Bungasari, returned to profit with a modest profit after tax of RM2.9 million (US$685,417.32), a significant improvement from the loss after tax of RM11.7 million (US$2.76 million) it previously incurred. This turnaround led to a share of profit of RM0.9 million (US$212,715.67) for Malayan Flour Mills, reversing a share of loss of RM3.5 million (US$827,227.61) in Q2FY2024, as it saw stronger contribution margins and increased flour sales volume in Indonesia.

 

For the first half of FY2025, Malayan Flour Mills' net profit grew 7.8% to RM61.16 million (US$14.45 million) from RM56.73 million (US$13.40 million)in the corresponding first half of FY2024, as revenue expanded to RM1.6 billion (US$378.16 million) from RM1.5 billion (US$354.52 million)as it sold more flour and grain amid lower selling prices.

 

In a statement, the company's executive deputy chairman and managing director Teh Wee Chye attributed the strong results to improved market dynamics in countries where the group operates.

 

"While the flour business in Malaysia and Vietnam continued to sustain their performance, the poultry segment saw higher broiler production volumes to meet the increasing demand in the domestic market. At the same time, our joint venture flour operations in Indonesia managed to turn around with a modest profit," Teh said.

 

Looking ahead, Teh expressed optimism about the group's outlook for the remainder of the year, while acknowledging ongoing challenges, particularly in Indonesia. "We will continue to navigate these with prudence, while ensuring a reliable supply of staple foods for the market," he added.

 

The group also highlighted that a new 600-tonne-per-day flour milling line at its Lumut facility in Sitiawan was commissioned during the quarter, increasing its production capacity in Malaysia by 33% to 2,400 tonnes per day.

 

On August 25, Malayan Flour Mills' share price closed half a sen or 0.91% higher at 55.5 sen, bringing the group's market capitalisation to RM688 million (US$162.60 million).

 

-      The Edge