November 22, 2022
Malaysian poultry processor Malayan Flour Mills' profit jumps in Q3
Malayan Flour Mills Bhd (MFM), a major Malaysian poultry processor and flour mills operator, announced a net profit in Q3 of MYR 46.21 million (~US$10.1 million; MYR 1 = US$0.22) , 12 times higher compared to the MYR 3.91 million ~(US$855,000) profit announced last year, thanks to improving operations of the group's poultry integration (PI) segment, The Sun Daily reported.
Due to higher selling prices and production volume, revenue increased 28.8% year over year to MYR 799.45 million (~US$174 million) from MYR 620.52 million (~US$135 million).
But for the full nine months of the current fiscal year, net profit fell by 34.5%, to MYR 98.17 million (~US$21.4 million) from MYR 149.88 million (~US$32.7 million).
The nine-month revenue increased by 21% to MYR 2.1 billion (~US$459 million) from MYR 1.73 billion (~US$522 million), supported by a price adjustment strategy in the flour and grains trading segment. This helped the segment grow by 20.8% with better demand as the countries move closer to COVID-19 endemicity.
Teh Wee Chye, executive deputy chairman of MFM, said the company's Q3 2022 financial results demonstrate the effectiveness of an integrated business model combining poultry processing and flour milling.
He said the poultry integration segment is anticipated to increase profit contribution to MFM as the company accelerates its capacity utilisation at their primary processing plant, while the flour milling business will continue to support earnings.
Despite the fact that some commodity prices are starting to stabilise, MFM said that due to global weather challenges, wheat prices are expected to remain high through 2023. In addition, rising inflation and the ringgit's depreciation against with a strong US dollar will compound the cost pressure. The group's flour operations in Malaysia and Vietnam are expected to affected by these pressures.
Although the Malaysian government partially lifted its ban on chicken exports on October 11, 2022, as well as improved domestic economic prospects and partnership with Tyson International Holding Company since end May 2021,
MFM is optimistic about its outlook for the remainder of 2022 and beyond, as the Malaysian government lifted its ban on chicken exports on October 11, 2022, as well as improved domestic economic prospects, and a partnership with Tyson International Holding Company since end May 2021
- The Sun Daily