MSM Malaysia swings back to profit on Q2

Malaysia's MSM Holdings Bhd has returned to profit in the second quarter of FY26, reporting a net profit of RM23.43 million, compared to a loss of RM29.74 million a year ago. However, revenue declined 25.3% to RM607.78 million from RM812.75 million previously due to lower selling prices and sales volume. Earnings per share improved to 3.33 sen, compared to a loss per share of 4.23 sen the previous year.

For the first half of FY26, the company recorded a net profit of RM4.58 million, up from a loss of RM26.02 million a year ago, with revenue down 25.6% to RM1.16 billion from RM1.56 billion previously. MSM continues to apply its produce-to-demand approach, aligning production with market demand and margin considerations, leading to a utilisation factor of 39% in the first half of FY26, down from 48% the same period last year.

Lower raw sugar prices, favourable foreign-exchange movements, and reduced freight costs contributed to the profit improvement. Group CEO Dr Aini Shahar noted that while profitability returned in Q2, revenue and utilisation remained below the same period last year, and the operating environment remained challenging. The company remains focused on higher-margin sales, aligning production with demand, cost discipline, and optimising its product mix and sales strategy.