KUALA LUMPUR, MALAYSIA – Malayan Flour Mills reported on Feb. 24 that operating profit for its flour mills and grain segment increased 6% for the year ended Dec. 31, 2015, while overall company profit dropped 48%.
Operating profit for the flour and trading in grains and other allied products segment was RM44.7 million ($10.58 million) for the year, up from RM42.3 million. For the fourth quarter, operating profit for the segment was down 10% to RM8.9 million, mainly due to a lower margin in trading in grains.
Overall, the company reported profit before tax decreased 48% to RM43.8 million, compared to RM83.7 million the previous year. The decrease was attributed to lower margins in the poultry integration segment and a higher share of loss on an equity accounted joint venture.
Malayan Flour Mills said despite uncertainties surrounding commodity prices, volatile foreign exchange rates and the competitive market environment, the board expects the group’s performance in 2016 to remain positive.
For the fourth quarter, the company reported a loss of RM4.4 million compared to a profit of RM1.3 million in the same period a year earlier. The loss was mainly due to lower profit margins in the poultry integration segment.
For the year, the company reported revenue increased 1% to RM2.302 billion. Revenue for the fourth quarter was RM602.1 million, an increase of 7% from RM 574.1 million in the same period a year earlier. The increase was mainly attributed to higher sales in the flour and trading in grains segment.
Revenue in the flour and trading in grains segment was up 10% to RM1.57 billion, due to a higher sales volume of flour and grains.
Poultry integration results have been hurt by lower live bird selling prices and higher costs, the company said. Operating profit for the segment in 2015 was RM29.6 million compared to RM52.9 million a year earlier.