MSM Malaysia Holdings Bhd has posted a narrower second quarter net loss year-on-year on the back of higher margins as well as lower financing costs and operating expenses.
The sugar refiner in a bourse filing today said that the group registered a net loss of RM21.55 mil in the second quarter ended June 30 (2Q20) from RM67.33 mil a year earlier.
“[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 2Q20 revenue fell to RM448.74 mil from RM474.22 mil 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 mil from RM74.39 mil a year earlier while revenue dropped marginally to RM959.58 mil from RM959.84 mil.
Moving forward, 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.
MSM’s share price hovered at 57 sen or 0.88% higher at 4.50pm today.
