KUALA LUMPUR (Nov 9): Malayan Flour Mills Bhd (MFM) reported a 70% surge in net profit for its third financial quarter ended Sept 30, 2017 (3QFY17) to RM23.51 million or 4.27 sen per share, from RM13.83 million or 2.51 sen per share in 3QFY16, 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.

In a filing with Bursa Malaysia today, MFM reported a 2.7% increase in revenue to RM630.97 million in 3QFY17, from RM614.4 million a year ago, on higher sales in flour and grains trading segment, which was partially offset by lower sales recorded in its poultry integration segment.

For the nine months period ended Sept 30, 2017 (9MFY17), MFM reported a 4% increase in net profit to RM64.57 million or 11.73 sen per share, from RM62.11 million or 11.29 sen per share, on higher margins in its flour and grains trading segment, arising from net unrealised gain on future and option contracts recorded.

Revenue for 9MFY17 contracted by 4.1% to RM1.81 billion, from RM1.89 billion a year ago, on lower sales volume recorded in the flour and grains trading segment in the period.

On its 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.

MFM shares were up 2 sen or 1.1% to RM1.89 today, for a market capitalisation of RM1.03 billion.