Thursday 28 Mar 2024
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KUALA LUMPUR (May 24): After a difficult 2018, Malayan Flour Mills Bhd (MFM) is starting 2019 on a strong note — its net profit of RM19.87 million in the first quarter ended March 31 rose more than tenfold from the RM1.6 million recorded a year ago.

MFM attributed the improved performance to higher operating profit in the group’s flour and grains trading segment, supported by higher selling prices which lifted margins. Demand was also healthy, the group said in a stock exchange filing today.

The company’s poultry integration segment also saw better profits on higher broiler production volume.

Revenue climbed 12.66% to RM635.17 million against RM563.82 million in the previous year's corresponding quarter owing to a 12% improvement in sales in its flour and grains trading segment, as well as a 14.4% sales jump in its poultry integration segment.

MFM said it expects its performance in 2019 to remain favourable as it has already made efforts to institute price increases in its flour and grains trading segment, which will protect margins.

“Efforts (have also been) undertaken to improve feed quality, day-of-chicks and broiler production volume, and reduce production costs through better feed conversion ratio and lower mortality.”

MFM shares closed up 3 sen or 4.2% to 74 sen today valuing the group at RM746.3 million.

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