MSM slips into red in Q2
KUALA LUMPUR: Refined sugar producer MSM Malaysia Holdings Bhd slipped into the red on higher raw material costs and weakening ringgit.
MSM recorded a second quarter net loss of RM21.45 million, from a net profit of RM23.68 million a year earlier.
At pre-tax level, the company posted a loss of RM28.59 million from a pre-tax profit of RM31.07 million recorded in the same quarter last year.
In a filing to Bursa Malaysia yesterday, MSM said revenue was up at RM692.45 million for the quarter ended June, compared with RM633.85 million in the same quarter last year.
“The average raw sugar cost for the group increased by 54 per cent (RM/tonne), compared with the same period last year due to the higher market price of raw sugar, peaking at 20.54 US cents (88 sen) per pound.
“The subsequent decline in the current market price of sugar of about 13.75 US cents per pound had adversely impacted the group,” it said.
For the six months, pre-tax loss stood at RM68.15 million, compared with a pre-tax profit of RM91.63 million, while revenue was reduced to RM1.34 billion, compared with RM1.18 billion recorded previously.
MSM said notwithstanding the volatility in commodity prices, the group expected its performance to be in line with the rest of the industry.
“The results are expected to improve in the near term with the replacement of stocks of raw sugar material at lower market prices,” it added. Bernama