KUALA LUMPUR: MSM Malaysia Holdings Bhd
slipped into the red with a net loss of RM16.16mil in the fourth quarter ended Dec 31, 2021 (4Q21) towards a net revenue of RM56.22mil a yr prior.
The loss in the present quarter is because of decrease gross margin as a result of increased uncooked sugar, freight and gasoline prices incurred in this quarter in comparison with the identical quarter final yr, in keeping with MSM.
Revenue, nonetheless, rose 1.9% to RM642.02mil in 4Q21 from RM630.33mil a yr in the past as a result of enhance in general common promoting worth.
For the full monetary yr ended Dec 31, 2021, MSM posted a net revenue of RM125.35mil towards a net loss of RM71.23mil final yr whereas income rose to RM2.26bil from RM2.18bil a yr in the past.
MSM group chief government officer Syed Feizal Syed Mohammad stated MSM had made good progress on its turnaround plans in 2021 amidst the rising development of principal manufacturing price components.
“On the domestic front, the positive development of the National Recovery Plan has provided strong impetus for greater economic recovery and socio-economic activities leading to more product consumption including sugar,” he stated in an announcement.
Operationally, the manufacturing price for the group elevated as in comparison with the earlier yr pushed by 18% enhance in NY11 costs, 69% enhance in freight price and decrease utilisation issue (UF) as a result of momentary shutdown in MSM Johor for boiler rectification works and MSM Prai for sanitisation work as a result of Covid-19 as required by the Ministry of Health.
MSM stated the enhance in NY11 costs was outweighed by decrease overseas alternate of two%.
“Internally, MSM Johor managed to improve its production yield as well as its UF although the plant is yet to achieve breakeven capacity level. On the export market, barring unforeseen circumstances, FY 2022 poses good opportunities within the Asia Pacific region that has a strong and growing demand.
“Besides strengthening MSM market position in Vietnam, China, Singapore and South Korea, we have large anchor contracts with the likes of Coca-Cola recently awarded over the next two years as example. Such contracts allow the expansion and access into new markets such as the Pacific Islands.
“We hope to also enhance our market into Australia and New Zealand in addition and plan for penetration into the Philippines and Indonesia,” Syed Feizal stated.
MSM stays cautiously optimistic in direction of sustaining its monetary efficiency in 2022 and can proceed to drive its environmental, social and governance (ESG) framework via a variety of ongoing initiatives such a collaboration with Wilmar Sugar Pte Ltd.
