Profit statements




KUALA LUMPUR, FEBRUARY 22, 2022 – MSM Malaysia Holdings Berhad (MSM) recorded a profit before tax (PBT) of RM81 million for the 12 months ended December 31, 2021 (FY2021), compared to a PBT of RM36 million in the corresponding period from last year, despite operating in a challenging environment with increased production costs, increased NY11 and transportation costs. In FY2021, the gain on disposal of MSM Perlis Sdn Bhd amounting to RM92 million contributed to the Group recording a total consolidated PBT of RM170 million.

The group also recorded higher revenue of RM2.26 billion for the 12-month financial year 2021, compared to RM2.18 billion in the last financial year. The improvement in revenue for the quarter under review, RM642 million for Q4 2021 compared to RM630 million for Q4 2020, was mainly due to a higher premium, but hampered by lower volume due to reduced demand as consumption has not returned to pre-COVID levels.

During the quarter under review, the flash floods of December 18 and 19 affected a large part of Selangor. The Group’s temporary refined sugar warehouse located in Kota Kemuning was also affected by flooding and initiated an insurance claim regarding the affected inventory. Currently, a full damage assessment is underway.

MSM Group Managing Director, Syed Feizal Syed Mohammad, said: “MSM has made good progress with its turnaround plans in 2021 amid an upward trend in key cost of production elements. Domestically, the positive development of the national recovery plan has provided strong momentum for greater economic recovery and socio-economic activities leading to greater consumption of commodities, including sugar. »

Operationally, the Group’s cost of production increased compared to the previous year, due to an 18% increase in NY11, a 69% increase in freight cost and a factor of utilization (UF) lower due to temporary shutdown of MSM Johor for boiler rectification works and MSM Prai for remediation works due to COVID-19 as required by Ministry of Health. The increase in NY11 was offset by a decline in exchange rates of 2%.

“Internally, MSM Johor has managed to improve its production yield as well as its UF although the plant is yet to break even. In the export market, barring unforeseen circumstances, FY 2022 offers good opportunities in the Asia-Pacific region which has a strong In addition to strengthening our position in the MSM market in Vietnam, China, Singapore and South Korea, we have important anchor contracts with companies like

of Coca-Cola recently awarded over the next two years as an example. Such contracts allow for expansion and access to new markets such as the Pacific Islands. We also hope to strengthen our market in Australia and New Zealand and plan to penetrate the Philippines and Indonesia,” added Syed Feizal.

MSM remains cautiously optimistic about maintaining its financial performance in 2022 and will continue to drive its environmental, social and governance (ESG) framework through a wide range of ongoing initiatives, such as a collaboration with Wilmar Sugar Pte. ltd. in establishing a sustainable sugar supply chain and new initiatives designed to achieve overall sustainable growth. MSM will also embark on net zero carbon emissions and plans are underway. “ESG is not about compliance but simply the right thing to do and I am proud of MSM’s intensified efforts.” added Syed Feizal.

About MSM Malaysia Holdings Berhad (MSM)

MSM Malaysia Holdings Berhad (MSM) is Malaysia’s largest refined sugar producer and one of Asia’s largest sugar refiners. MSM is involved in the production, marketing and sale of refined sugar products under the brand “Gula Prai”. The Company conducts its business primarily through two operating subsidiaries, MSM Prai Berhad and MSM Sugar Refinery (Johor) Sdn Bhd. In addition, MSM also operates a logistics company – MSM Logistics Sdn Bhd.

At present, MSM’s annual production capacity is 2.05 million tons of refined sugar. In 2020, MSM produced 1,010,215 tons of refined sugar, of which 270,628 tons are destined for the export market. Currently, MSM corroborates up to 60% of the domestic market share. MSM has been listed on the Bursa Malaysia Main Market since 2011 and has a market capitalization of RM401 million as of December 31, 2020. MSM combines economic success, environmental protection and social responsibility for a sustainable future.

MSM offers a variety of products ranging from refined white sugar of different grain sizes to soft brown sugar. These are marketed and sold in a variety of packaging options under its flagship brand – Gula Prai. MSM also sells molasses, a by-product of the refining process, to distilleries and producers of ethanol, animal feed and yeast, among other products. In addition to domestic consumers, MSM sells to a wide range of customers in Malaysia and other countries directly and indirectly through traders, wholesalers and distributors. Its customers include large corporations in the beverage and confectionery industries, hotels, restaurants and food outlets.

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Forward-looking statements

Certain statements in this press release regarding MSM’s operations may constitute forward-looking statements. thesestatements can be identified by key words such as “believes”, “estimates”, “anticipates”, “expects”, “intends”, “may”, “will”, “plans”, “outlook” and other words of similar meaning when discussing future operating or financial performance. These statements relate to MSM’s plans, objectives, goals, strategies, future operations and performance. Actual results and results may differ materially from those projected in any future-orientedstatements due to various events, risks, uncertainties and other factors. We neither intend nor assume any obligation to update or revise any future-orientedstatements, whether as a result of new information, future events or otherwise.

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