PETALING JAYA: MSM Malaysia Holdings Bhd recorded a loss before tax (LBT) of RM363 million for the fourth quarter of the financial year ended Dec 31 2025 (Q4’25), compared to a profit before tax (PBT) of RM96 million in the corresponding quarter of last year.
The quarterly loss was primarily due to non-cash impairment of the group’s non-financial assets, amounting to RM360 million.
A review, conducted in line with accounting standards, was prompted by a reassessment of asset values based on current operating conditions. Key factors influencing the review included the increase in losses recorded by MSM Sugar Refinery (Johor) Sdn Bhd (MSM Johor) throughout the year, resulting from lower-than-expected capacity utilisation and reduced sales demand.
Additionally, the industry anticipates a rationalisation of the pricing framework for sales of products subject to price control.
Group revenue for the quarter declined 17% to RM783.1 million from RM943.6 million a year earlier, mainly due to lower sales volume and lower average selling price (ASP).
On a positive note, production costs improved by 4%, benefiting from a favourable foreign exchange rate and lower freight costs.
Commenting on the results, newly appointed MSM group CEO Dr Aini Shahar said the impairment is a prudent accounting exercise to align the carrying value of MSM Johor’s assets with current realities.
“It is a non-cash adjustment, based on updated assumptions regarding incentive support and plant performance, and it ultimately strengthens the quality and transparency of our financial reporting,” she said.
Aini emphasised that the adjustment has no immediate impact on the group’s operational liquidity.
“This does not have an immediate impact on our day-to-day operations or cash flow. Our focus remains firmly on execution. We are prioritising improved sales, better plant performance, and stringent cost discipline to build a more resilient and sustainable earnings profile,” she said.
For FY25, MSM recorded an LBT of RM375 million, primarily due to the cumulative impact of impairment and the challenging operating environment. This contrasts with a PBT of RM75 million in FY24. Full-year revenue declined 12.7% to RM3.09 billion from RM3.54 billion previously.
Looking ahead, MSM anticipates the operating environment to remain challenging in 2026 amid intensified competition from imported sugar. The global oversupply in the refined sugar market has led to a surplus in Malaysia, contributing to a contraction in MSM’s market share.
In response, the group is streamlining and optimising its operations to return to profitability.
Additionally, the group is actively engaging with the government to finalise a sustainable pricing framework to protect national food security and secure the future of the local sugar industry.
Since 1964, MSM has firmly established itself as a leading national sugar refinery and among the top 10 refiners in the world, exporting to over 20 countries to date and providing high-quality refined sugar products to ensure Malaysia’s food security.
The group remains committed to supporting Malaysia’s food security while advancing sustainability through its environmental, social and governance framework.
