KUALA LUMPUR (Nov 21): MSM Malaysia Holdings Bhd, the country's largest sugar refiner, slipped into the red with a net loss of RM72.8 million for the third quarter ended Sept 30, 2022 (3QFY2022) compared with a net profit of RM96.86 million a year earlier.

This is its fourth straight loss-making quarter.

This resulted in a loss per share of 10.36 sen for 3QFY2022 from an earnings per share of 13.78 sen for 3QFY2021.

In a bourse filing on Monday (Nov 21), MSM blamed the weak quarterly earnings on high input costs mainly raw sugar, freight, natural gas and weakening of the ringgit. Included in the loss for the quarter were certain accounting provisions on operational matters of RM46 million that can potentially be reversed with improved parameters recorded.

This was despite quarterly revenue climbing 21.8% to RM668.13 million from RM548.65 million in 3QFY2021 due to increased average selling price.

For the cumulative nine-month period (9MFY2022), MSM recorded a net loss of RM134.55 million compared with a net profit of RM141.51 million a year earlier. Revenue for 9MFY2022, however, rose 16.7% to RM1.89 billion from RM1.62 billion in 9MFY2021. 

In a separate statement, MSM group chief executive officer Syed Feizal Syed Mohammad said margins are compressed in the consumer segment under gazetted controlled selling prices, which has led Malaysia to be the cheapest nation in retailed sugar prices in Asia-Pacific at RM2.85 per kg.

"In comparison, Thailand is over RM3.40 per kg, Indonesia over RM4.40 per kg and the Philippines over RM6 per kg. As a joint sugar industry player we have highlighted to the government the need for the long delated price adjustments," he added.

Syed Feizal said MSM remains focused to ramp up its production, increase yield, further reduce unit cost and mitigate loss.

"One of the initiatives identified is to embark into alternative energy such as solar to reduce electricity usage and targeted to commence in 2023 with MSM Prai Bhd and MSM Sungai Buloh warehouse. MSM will continue to pursue sustainable growth with an enhanced environmental, social and governance framework within MSM Group through a wide range of ongoing and new initiatives," he noted.

Shares of MSM finished 1.5 sen or 1.81% higher at 84.5 sen on Monday, bringing the group a market capitalisation of RM594 million.