Malayan Flour Mills 2Q net profit plunges, but pays 2 sen dividend

-A +A

KUALA LUMPUR (Aug 17): Malayan Flour Mills Bhd's (MFM) net profit plunged 70.5% to RM4.77 million in the second quarter ended June 30, 2018 (2QFY18) from RM16.15 million a year ago, due to lower profits in the flour and grains trading and poultry integration segments.

Additionally, the group recorded a share of loss for its equity accounted joint venture (JV) in Indonesia amounting to RM3.6 million in 2QFY18 compared with a share of profit of RM1.9 million in 2QFY17.

Earnings per share fell to 0.87 sen for 2QFY18 compared with 2.93 sen for 2QFY17.

Quarterly revenue also fell 4.9% to RM547.68 million from RM575.93 million on lower sales recorded in the poultry integration segment which fell 17.2% year-on-year in revenue.

Nevertheless, the group declared an interim dividend of 2 sen per share for the financial year ending Dec 31, 2018 (FY18), payable on Sept 20.

In a filing with Bursa Malaysia today, MFM said its equity accounted JV in Indonesia suffered a share of loss mainly due to foreign exchange losses arising from the further weakening of the rupiah against the US dollar since end-2017.

The weak quarterly earnings dragged the group's net profit for the cumulative six months (1HFY18) down 84.5% to RM6.37 million from RM41.06 million a year ago, while revenue fell 5.8% to RM1.11 billion from RM1.18 billion in 1HFY17.

On prospects, MFM said the group's performance in 2018 is expected to remain profitable despite the challenges of uncertain global economic environment, volatile commodity prices and foreign exchange rates.

MFM shares closed down two sen or 1.64% at RM1.20 today for a market capitalisation of RM660.34 million. The counter's share price has fallen by 44.7% over the past year.