Malayan Flour Mills cautious on outlook
News & Events 2008
Posted Date : 10 Jun 08
MALAYAN Flour Mills Bhd (MFM) is cautious on its outlook as volatile raw material costs and ocean freight put pressure on margins.
The company is hopeful that its poultry integration business, one of its core businesses, would turn around in 2009 after narrowing its loss last year.
"There are a lot of uncertainties related to our poultry integration and flour businesses. But we did not perform very badly in the first quarter (to March 2008)," MFM chairman Tan Sri Arshad Ayub said.
Managing director Teh Wee Chye said: "Nothing is quite clear in the business due to the current situation globally."
The costs of transport, raw materials and logistics were increasing, Teh added.
The impact would be felt more in the coming months, Arshad and Teh told reporters after MFM's annual general meeting in Kuala Lumpur yesterday.
MFM's revenue, said Arshad, breached the RM1 billion mark for the first time in the year ended December 2007, up 30 per cent from RM794.2 million previously. Group pre-tax profit was also at an all-time high at RM64 million during the year.
The performance was mainly due to its flour business in Vietnam and Malaysia. Profit from the business grew 39 per cent to RM80.8 million from RM58 million a year earlier.
The poultry integration segment cut its loss to RM10 million from RM15.8 million previously on RM198.1 million revenue.
Teh said MFM had sorted out several internal issues that could help the segment be profitable again by end-2009.
In the first three months to March 2008, MFM's pre-tax profit went up 182.4 per cent to RM36.06 million. Revenue surged 31.7 per cent to RM291.02 million from RM220.99 million previously.
Source : The New Straits Times Newspaper, Biz News