CEO Syed Feizal said the local sugar industry remained resilient.
KUALA LUMPUR: After eight consecutive quarters of losses, MSM Malaysia Bhd continues to rein in the deficit and strive towards a return to profitability amid elevated production costs.
In the third quarter ended Sept 30, 2023 (3Q23), the sugar producer narrowed its net loss to RM36.06mil from a net loss of RM72.8mil in the same quarter a year earlier.
The improvement in performance was owing to improved margins from the industry and export segments, lower freight cost and capacity uitlisation, it said in a statement.
The bottom-line result represented a basic loss per share of 5.13 sen against 10.36 sen in 3Q22.
Revenue during the quarter rose to RM806.72mil from RM668.13mil in the year-ago quarter
Over the three quarters to Sept 30, 2023, MSM recorded a net loss of RM92.76mil against a net loss of RM134.55mil in the same 2022 period.
Revenue over the nine months was at RM2.14bil as compared to RM1.89bil in the previous corresponding period.
MSM chief executive officer Syed Feizal Syed Mohammad said the local sugar industry remained resilient despite prolonged challenges with high input costs due to the increase in the raw sugar cost, high freight and natural gas cost and the weakening of the ringgit.
“The prevailing high input costs are being further mitigated but continue to impede the improvement of the group’s financial performance.
“The wholesale segment contributes 40% of total sales affected by negative margins, as its price is controlled by the government,” he said.
He added that the group sought the government’s support on normalising prices to help overcome the high input costs.
