MFM dips 5% on Q2 net loss

KUALA LUMPUR: Shares of Malayan Flour Mills Bhd (MFM) were losing around 5% in early trade Thursday after the group reported a net loss in its second quarter, compared to prior year’s profit, despite increased revenues.

The counter fell 4.92%, or three sen to 58 sen with 3.97 million shares traded. MFM-LA shed 9.77%, or 13 sen to RM1.20 while MFM-WC lost 6.67% to 28 sen.

MFM posted a net loss of RM580,000 in its second quarter ended June 30, 2019, against a net profit of RM4.77mil a year ago, due to losses sustained in its poultry integration segment.

However, its quarterly revenue rose 14.21% to RM625.52mil from RM547.68mil last year.

Despite the weaker second quarter results, the group’s net profit tripled to RM19.29mil in the first six months, from RM6.37mil a year ago, while revenue climbed 13.42% to RM1.26bil from RM1.11bil.

On prospects, the group expects its performance to remain favourable, as it plans to institute price increases in its flour and grains trading segment to protect its margin, as well as to improve feed quality, together with its day-old-chicks and broiler chicken production volume.

Source: TheStar