22-05-2025
- Business
- New Straits Times
MSM posts 91pct drop in Q1, flags industry headwinds
KUALA LUMPUR: MSM Malaysia Holdings Bhd's net profit dropped 91 per cent to RM3.73 million in the first quarter ended March 31, 2025 (1QFY25) from RM41.71 million a year earlier.
The sharp decline was due to lower margins and reduced capacity utilisation, despite a decrease in production costs.
Revenue for the quarter also fell 17.3 per cent to RM749.68 million from RM906.6 million previously due to lower sales volume and average selling prices.
MSM reported a lower capacity utilisation factor of 47 per cent in the period, compared to 52 per cent last year due to plant shutdown in both refineries but it was mitigated by consistency in efficiency yield.
MSM group chief executive officer Syed Feizal Syed Mohammad said the sugar industry is expected to face continued headwinds in 2025, driven by persistently high input costs and volatility in raw sugar prices amid fluctuating global production.
He noted that the dumping practices of imported sugar into the country without control have also impacted sales volume and prices.
However, he said the matter has been raised by the joint local sugar industry with the government authorities for needed anti-dumping actions.
"The joint local sugar industry expects the matter to be resolved in ensuring price stability and food security sustainability.
"Meanwhile at the global front, we remain vigilant of escalating geopolitical tensions and the ongoing trade war, both of which pose risks to global supply chains, trade flows and currency stability," Syed Feizal said.
He pointed out that the company aims to expand market presence, particularly in China and the Asean region, including Vietnam, Indonesia, Singapore and the Philippines.
"Our goal is to increase total export volumes to 360,000 tonnes in 2025, with an emphasis on value added products like liquid sugar and premixes from MSM Johor.
