KUALA LUMPUR: Malayan Flour Mills Bhd (MFM) reported a net profit of RM18.8 million for the second quarter of 2024 (2Q24), a turnaround from the RM2 million net loss in the same quarter last year.
The company attributed the improved profitability to enhanced margins in its flour and grain trading (FGT) segment, particularly in Malaysia and Vietnam.
While its revenue dropped slightly to RM751.9 million from RM752.7 million a year earlier, Malayan Flour said this was due to reduced earnings in other segments, although it was partially offset by increased revenue in the FGT segment.
During the quarter, its FGT segment - together with the aquafeed business - recorded a net profit of RM21.5 million, reversing the net loss of RM1.3 million in the corresponding quarter last year.
"The strong performance was primarily driven by improved margins due to lower wheat consumption costs," it said.
The poultry integration (PI) segment, operated through a 51.0 per cent-owned joint venture Dinding Tyson Sdn Bhd, showed improvement in the quarter, recording a net profit of RM8.4 million compared to a loss in the previous quarter (1Q24).
MFM attributed this quarter-to-quarter turnaround to higher sales volumes and reduced input costs meanwhile the loss in 1Q24 was mainly due to a boycott of Western fast-food chains linked to the ongoing Middle East geopolitical conflict.
The company declared an interim dividend of 1.5 sen per share for the financial year ending Dec 31, 2024.
It said the ex-date for the dividend is Sept 12 with a payment date set for Sept 27.
The RM18.6 million dividend payout represents 32.8 per cent of the net profit attributable to shareholders for the first half of 2024.
MFM executive deputy chairman cum managing director Teh Wee Chye noted that the positive performance, despite the challenges posed by the geopolitical crisis, suggested that chicken meat continues to be a popular choice in the country.
"While our FGT segment continues to demonstrate strong performance, driving our 2Q24 growth, we are particularly encouraged by the significant improvement in our PI segment compared to the preceding quarter.
"We recognise the performance gap in our PI segment, and to address it, we will continue to explore new markets to sell our processed chickens, both locally and overseas, to ensure sustained growth.
"For our FGT segment, we will stay focused on improving the efficiency and capacity utilisation of our flour milling facilities, ensuring a reliable supply of raw materials and uninterrupted operations to meet the increasing demand for flour in Malaysia, Vietnam, and Indonesia," he added.