This article first appeared in The Edge Financial Daily on November 10, 2017

KUALA LUMPUR: Malayan Flour Mills Bhd (MFM) reported a 70% year-on-year (y-o-y) surge in net profit in the third financial quarter ended Sept 30, 2017 (3QFY17) to RM23.51 million, from RM13.83 million a year earlier, due to higher profit in its flour and grains trading segment, coupled with a higher share of profit from its joint venture company, PT Bungasari Flour Mills Indonesia. Revenue was up 3% y-o-y to RM630.97 million from RM614.4 million, on higher sales in the flour and grains trading segment, partially offset by lower sales in its poultry integration segment, its filing with Bursa Malaysia showed.

For the first nine months of FY17, MFM reported a 4% y-o-y rise in net profit to RM64.57 million from RM62.11 million, on higher margins in its flour and grains trading segment, arising from a net unrealised gain on future and option contracts recorded. Cumulative revenue, however, contracted 4.1% y-o-y to RM1.81 billion from RM1.89 billion, on lower flour and grains sold. On prospects, MFM said the global economic environment continues to be uncertain, and commodity prices and foreign exchange rates remain volatile. “Despite these uncertainties and the competitive market environment, the board expects the group’s performance in 2017 to remain favourable,” it said.