KUALA LUMPUR (Aug 19): MSM Malaysia Holdings Bhd said today second quarter net loss narrowed on-year and in quarterly terms as the sugar producer registered higher margins and incur lower finance cost and operating expenses.

In a statement to Bursa Malaysia today, MSM said net loss narrowed to RM21.55 million in the second quarter ended June 30, 2020 (2QFY20) from RM67.33 million a year earlier. In quarterly terms, 2QFY20 net loss narrowed from RM34.71 million in 1QFY20, it said.

"[Compared to a year earlier,] the lower loss in the current quarter is attributable to higher overall margin of 3.8% and lower finance cost incurred in this quarter compared to same quarter last year. [In quarterly terms,] this (lower net loss) is due to higher gross margin and lower operating expenses in the current quarter,” MSM said.

MSM said 2QFY20 revenue fell to RM448.74 million from RM474.22 million a year earlier due to the decrease in sugar quantity sold by its wholesale segment.

For the first half of FY20 (1HFY20), MSM said cumulative net loss narrowed to RM56.26 million from RM74.39 million a year earlier while revenue dropped marginally to RM959.58 million from RM959.84 million.

Looking ahead, MSM said it will continue its focus on sustainable growth strategies which include product diversification to penetrate into export markets and increase profitability. 

"MSM is committed to increase capacity utilisation of MSM Johor, which will reduce production cost and improve margins. MSM expects the business environment to remain challenging for the rest of 2020,” it said.

At Bursa’s 12:30pm break today, MSM’s share price settled up 1.5 sen or 2.65% at 58 sen for a market value of RM407.73 million. The stock saw 2.69 million shares traded.