Malaysia-based Malayan Flour Mills Bhd posted a 49.1% jump in its second-quarter net profit, primarily driven by its flour and grain trading business and a profitable turnaround in its Indonesian joint venture, PT Bungasari Flour Mills.
As of June 30, 2025, the group's net profit rose to 664,000 from 445,000 USD in 2024, and revenue increased by 6.43% to 189 million USD. The company's flour, grain, and aquafeed segment also increased its profits by 42.4% since 2024.
PT Bungasari, the company's Indonesian joint venture, made a modest profit of 686,000 USD after tax, up significantly from a previous 2,769,000 USD loss. The company experienced better flour sale volume in Indonesia, increasing its contribution margins and share of profit.
In the first half of the 2025 financial year, Malayan Flour Mills' net profit grew 7.8% to 1,457,477 USD. Amid lower selling prices, the company sold more flour and grain.
The
company's executive deputy chairman and managing director, Teh Wee
Chye, stated that the increased profits were due to stronger market
dynamics in the countries the group operates in.
"While the flour business in Malaysia and Vietnam continued to sustain their performance, the poultry segment saw higher broiler production volumes to meet the increasing demand in the domestic market. At the same time, our joint venture flour operations in Indonesia managed to turn around with a modest profit," Teh said.
Chye is optimistic about the remainder of the fiscal year, though admits to ongoing challenges in Indonesia. "We will continue to navigate these with prudence, while ensuring a reliable supply of staple foods for the market," he added.
The group also highlighted that a new 600-ton-per-day flour milling line at its Lumut facility in Sitiawan was commissioned during the quarter, increasing its production capacity in Malaysiato 2,400 tons per day.
This article was sourced from The Edge Malaysia.