KUALA LUMPUR (Aug 25): MSM Malaysia Holdings Bhd said today its second-quarter net profit from continuing operations stood at RM13.28 million versus a net loss of RM19.42 million a year earlier as the sugar manufacturer's revenue rose on higher average selling prices (ASPs) for its products.

In a statement to Bursa Malaysia today, MSM said revenue from continuing operations rose 23.48% to RM554.1 million for the second quarter ended June 30, 2021 (2QFY21) from RM448.74 million a year ago.

"The higher profit for the current quarter was attributable to an improved margin from higher average selling prices and lower finance cost," MSM said.

For the half year ended June 30, 2021 (1HFY21), the group returned to the black by posting a net profit of RM44.65 million, compared to a net loss of RM56.26 million previously. Meanwhile, revenue for the period grew 11.41% to RM1.07 billion from RM959.58 million.

The group did not declare any dividends for the latest quarter.

MSM said it remains cautiously optimistic about its turnaround plan and its ability to achieve sustainable growth amid the rising trend of global raw sugar prices.

The sugar manufacturer added that it is working towards improving its efficiency, focusing towards a higher yield and capacity in order to lower refining and production costs.

Moreover, it remains positive on its full-year target performance.

On the domestic front, MSM said the National Recovery Plan under way and the rate of vaccination provide strong impetus for greater economic recovery and socio-economic activities, leading to more product consumption including sugar.

Meanwhile, in terms of exports, the group said its seaport segment is poised to grow further in 2021 as global trade recovery gains further momentum, backed by the reopening of economies, businesses and borders.

“This encouraging development is favourable for our MSM Johor refinery and the group,” it said.

Moreover, MSM affirmed that it will continue to pursue its turnaround plan and achieve sustainable growth with good returns.

At the noon break today, MSM had risen one sen or 0.64% to RM1.55, valuing the group at RM1.1 billion.