Malayan Flour Mills Bhd swings to US$9M quarterly profit on stronger flour volumes

MALAYSIA – Malayan Flour Mills Bhd (KL: MFLOUR) returned to profitability in the fourth quarter ended Dec 31, 2025, reporting a net profit of RM43 million (US$9.1 million), compared with a net loss of RM5.95 million (USD1.3 million) in the corresponding period last year.

The company attributes the turnaround to improved operational performance across its core flour and grain trading (FGT) division, alongside stronger contributions from its poultry integration business.

For a milling group operating in a competitive regional wheat market, the shift from loss to profit within 12 months reflects tighter cost management, improved volume throughput and more stable downstream demand.

Quarterly revenue rose 7.2% to RM877.6 million (US$186.0 million), up from RM818.61 million (USD173.5 million) previously.

The growth was driven primarily by higher sales volumes in Malaysia and Vietnam, even as average selling prices trended lower.

In practical terms, this indicates that physical demand for flour and grain-based products remained resilient, supported by consumption in retail, foodservice and food manufacturing channels.

Earnings per share for the quarter stood at 3.47 sen, compared with a loss per share of 0.48 sen a year earlier, mirroring the recovery in bottom-line performance.

The poultry integration segment, operated through 51%-owned joint venture Dindings Tyson Sdn Bhd, contributed RM6 million (US$1.3 million) in profit during the quarter, up from RM1.2 million (US$0.25 million) in the same period last year.

The improvement signals firmer poultry market fundamentals and operational efficiencies across feed milling, broiler farming and processing activities.

In Indonesia, the group recorded a RM1 million (US$0.21 million) share of profit from associate PT Bungasari Flour Mills Indonesia, reversing a RM2.8 million (US$0.6 million) share of loss previously.

The return to profitability in this market further strengthened consolidated earnings for the quarter.

Full-Year Recovery

For the full financial year FY2025, net profit rose 141% to RM139.9 million (US$29.7 million), compared with RM58.12 million (US$12.3 million) in FY2024.

Revenue increased 4.1% year-on-year to RM3.25 billion (US$689.0 million), reflecting steady growth in both the FGT and poultry integration segments.

The stronger fourth-quarter performance was therefore not an isolated event but part of a broader annual recovery, driven by improved operating margins and disciplined execution.

In line with the earnings rebound, the group declared a second interim dividend of 2 sen per share for FY2025, bringing total dividends for the year to 3.5 sen per share.

The payout amounts to RM43.4 million (US$9.2 million), representing 31% of annual net profit. The company has formalised a policy to distribute not less than 30% of annual net earnings, reinforcing its commitment to consistent shareholder returns.

Looking ahead, MFM continues to expand capacity in growth markets. In Vietnam, its subsidiary Vimaflour is increasing milling capacity from 2,000 tonnes per day to 2,500 tonnes per day, as the plant operates near full utilisation.

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