KUALA LUMPUR: MSM Malaysia Holdings Bhd returned to the black in the second quarter ended June 30, 2026 (2Q26), posting a net profit of RM23.43mil compared with a net loss of RM29.74mil a year earlier.
Revenue, however, fell 25.2% to RM607.78mil from RM812.75mil previously, mainly due to lower average selling prices (ASP) and sales volume.
The sugar refiner said improved margins and lower operating expenses supported its return to profitability, while it also benefited from lower raw sugar prices, favourable foreign exchange movements and lower freight costs.
For the first six months of 2026, MSM recorded a net profit of RM4.58mil, reversing a net loss of RM26.02mil in the corresponding period last year.
First-half (1H26) revenue declined 25.7% to RM1.16bil from RM1.56bil, mainly due to lower ASP and sales volume.
Its utilisation factor stood at 39% in 1H26, down from 48% in 1H25.
MSM group chief executive officer Dr Aini Shahar said the return to profitability represented an improvement, although revenue and utilisation remained below the levels recorded a year earlier.
“We have prioritised higher-margin sales, aligned production with demand and maintained tight cost discipline. Our immediate focus is to preserve margins and sustain profitability,” she said.
Looking ahead, MSM expects the sugar industry to remain challenging for the remainder of 2026, with continued cost pressure and competition from imported sugar in the domestic market weighing on margins.
“MSM continues to engage with the Government to finalise a sustainable pricing framework that will safeguard national food security and support the viability of the domestic sugar industry over time.
“Against this backdrop, MSM will remain focused on margin protection, cost discipline and operational efficiency.”