Malayan Flour Mills sees 49% surge in Q2 net profit on strong flour, grain trading volumes
The flour and grain trading business was the main driver of earnings, contributing US$10.84 million in operating profit.
MALAYSIA – Malayan Flour Mills Bhd (MFM), Malaysia’s pioneer wheat flour milling company, has posted a 49% jump in net profit for the second quarter ended June 30, 2025, buoyed by higher sales volumes in its flour and grain trading segment despite softer selling prices.
The company reported a net profit of RM28.07 million (US$6.67 million), compared to RM18.83 million in the same quarter last year. Revenue also rose 6.4% to RM800.23 million (US$190.22 million) from RM751.9 million.
According to the company, the flour and grain trading business was the main driver of earnings, contributing RM45.6 million (US$10.84 million) in operating profit, up from RM33.5 million (US$7.96 million) a year earlier. MFM attributed the growth to increased sales volume and stronger margins supported by lower wheat prices.
“The commodity prices of wheat and grain remain volatile and continue to be impacted by the persisting uncertainties in macroeconomic and geopolitical considerations,” the company said in its Aug. 25 filing with Bursa Malaysia.
It added that it would continue to monitor global supply-demand dynamics, adjust selling prices accordingly, and diversify its sourcing of wheat, corn, and soybean meal to mitigate risks.
MFM operates facilities in Lumut and Pasir Gudang with a combined milling capacity of 1,810 tons of wheat per day.
The company supplies a broad range of flour products used in everyday food staples including bread, noodles, biscuits, pastries, and cakes. Its product line spans high, medium, and low-protein flours, self-raising flour, all-purpose flour, and specialized Japanese high-protein bread flour, catering to both commercial bakeries and household consumers.
For the first quarter ending March 31, 2025, MFM reported a 13% year-on-year decline in net profit with earnings falling to RM33.09 million (approximately USD 7.05 million) from RM37.9 million in the same period last year.
This downturn was attributed to escalating direct costs outpacing revenue growth, despite a 6.3% increase in revenue to RM799.29 million (US$ 170.2 million), driven by higher sales volumes amid lower product prices.
The company’s share of profit from joint ventures also saw a reduction during the quarter.
In a strategic move to bolster its operations, Malayan Flour Mills earmarked RM215 million (US$ 45.5 million) in capital expenditure for the financial year ending December 31, 2025.
Of this, RM160 million (US$33.9 million) was allocated to the poultry integration segment, focusing on expanding and upgrading farming infrastructure, including the construction of parent farms and hatcheries. This investment will be jointly funded by Malayan Flour Mills and its partner, Tyson Foods, in a 51:49 ratio.
Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
