Malayan Flour Mills allocates RM215m capex for FY25
MALAYAN Flour Mills Bhd (MFM) has earmarked RM215 million in capital expenditure (capex) for the financial year ending Dec 31, 2025 (FY2025), with investments focused on expanding its flour and poultry segments in Malaysia and Vietnam.
At its AGM today, the group said RM55 million will be allocated to its flour and grain trading (FGT) division to expand capacity and improve efficiency.
This includes RM20 million for automation upgrades at its Lumut and Pasir Gudang mills, aimed at reducing manual labour and enhancing product consistency.
In Vietnam, MFM is investing RM34 million – RM21 million to expand capacity and upgrade operations in the north, and RM13 million for new flour silos and blending facilities in the south.
The remaining RM160 million will be directed to the group's Poultry Integration segment, shared between MFM and its joint venture partner.
Of this, RM100 million will go towards new farming infrastructure including parent farms and hatcheries, while RM60 million is earmarked for productivity improvements at existing farms.
'These strategic investments are critical to strengthening our production capacity and operational efficiency, enabling us to meet the growing demand in both Malaysia and Vietnam,' said executive deputy chairman and MD Teh Wee Chye.
For FY2024, MFM posted a net profit of RM58.1 million, rebounding from a RM6.7 million net loss a year earlier, thanks to strong FGT performance.
The group noted that net profit would have reached RM100.2 million if not for a RM42.1 million impairment on its Indonesian flour operation, which has remained loss-making for three consecutive years.
Teh said the group remains optimistic about the long-term prospects of its flour and poultry businesses, and that the capex will be funded via a mix of internal funds and borrowings.
'These initiatives reflect our commitment to solidifying our position as a leading staple food supplier while driving sustainable growth,' he added. –TMR
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