KUALA LUMPUR: MSM Malaysia Holdings Bhd, the producer of the national refined sugar brand “Gula Prai”, recorded a profit before tax (PBT) of RM96 million for the fourth quarter (Q4) of the financial year ending December 2024 (Q4’24), 81% increase compared to PBT recorded in the same quarter last year (Q4’23) of RM53 million.
This, the company in a statement said, is attributed to enhanced production efficiency from improved capacity utilisation, higher yield and better energy efficiency leading to lower gas consumption.
During the quarter, the group recorded significant turnaround in profitability, from lower production cost driven by lower NY11 raw sugar cost and USD rate, albeit higher freight cost.
The group achieved 11% higher sales volume in Q4’24 compared to the same quarter last year, indicating strong demand from domestic and export market. However, the group’s revenue of RM944 million was marginally lower 1% from the corresponding period last year, from 11% lower average selling price (ASP).
The group achieved higher capacity utilisation of 64% in Q4’24 compared to the Q4’23 of 52% and better improvement in efficiency yield to 97% in Q4’24 compared to 95% in Q4’23.
MSM Group CEO Syed Feizal Syed Mohammad said, “MSM’s profitability is a result of stronger operational performance driving cost efficiencies as targeted. Commercially, sales volume increased by 11%. However, this growth was offset by an 11% decline in the ASP. Included in the revenue is the government incentive afforded to the local sugar industry to address the anomaly in the sugar economics of the unchanged control ceiling price being the lowest priced in the Asean region.”
For the 12 months (12M) FY24, MSM recorded a turnaround PBT of RM75 million compared to loss before tax (LBT) of RM28 million in the corresponding period last year.
Revenue for 12M’24 increased to RM3.54 billion, a 15% rise from RM3.09 billion in the same period last year.
The increase in revenue is attributable to a 6% higher ASP and an 8% increase in sales volume. Production cost for the year increased mainly due to 3% rise in NY11 and 22% rise in freight costs. However, refining cost has improved by 11%, driven by better capacity utilisation and higher efficiency yield.
“The sugar industry continues to face prolonged high input costs, with global freight and natural gas prices remaining elevated. Additionally, raw sugar prices are volatile due to fluctuations in global production volumes. To mitigate these risks, MSM continues to enhance our raw sugar hedging practices as part of broader risk management strategy. Despite these challenges, we remain committed to strengthening both our domestic and export markets amid steady demand, while actively exploring additional regional opportunities. Furthermore, the Joint Sugar Industry is working closely with the government to finalise a sustainable pricing mechanism for the domestic retail segment and to manage imported refined sugar. This collaborative effort is essential in ensuring food security and the long-term sustainability of local sugar industry. MSM will continue its year-on-year growth and profitability with target to return as a dividend paying stock backed by a dividend policy,” said Syed Feizal.
“MSM concluded 2024 on a sweet note by celebrating its 60th anniversary. The Prai refinery - an iconic landmark in Penang and Malaysia’s first sugar refinery - has been a cornerstone of the nation’s food industry since 1964, providing livelihoods and fuelling economic growth at both state and national levels. We extend our heartfelt thanks to our stakeholders, partners, customers, and especially our loyal consumers for their unwavering support over the years. As a pioneer in the local sugar industry, we continue to set benchmarks in quality, innovation, and sustainability. With decades of expertise, award winning practices, and a steadfast commitment to excellence, we remain dedicated to supporting Malaysia’s food security and driving economic growth,” Syed Feizal added.
Since 1964, MSM has firmly established itself as a leading national sugar refinery and amongst top 10 refiners in the world exporting to over 20 countries till date, providing high quality refined sugar products to ensure Malaysia’s food security. MSM’s growth has sustainability through a step-up ESG framework fully embedded in business and operations.
