MSM Malaysia’s net loss narrows to RM71.2 million in Q3

PETALING JAYA: MSM Malaysia Holdings Bhd’s net loss for the third quarter ended Sept 30, 2020 narrowed to RM71.2 million from a net loss of RM185.1 million a year ago, attributable to higher overall margin of 7.21% and lower operating cost incurred in this quarter compared with the same quarter last year.

Its revenue rose 11.8% to RM594.55 million from RM531.69 million in the same quarter last year due to an increase in export sales.

For the nine-month period, its net loss narrowed to RM127.47 million from RM259.49 million, while revenue jumped 4.2% to RM1.55 billion from RM1.49 billion.

MSM said the outlook for fourth-quarter 2020 remains challenging with economic disruption in the country due to the conditional movement control order (CMCO) to curb the spread of Covid-19.

“As CMCO results in lesser social gatherings and limited travel, it will take some time before national sugar consumption returns to its pre-pandemic levels. Internationally, export destination port closures seen in previous quarter had reopened, providing steady export revenues to the group.”

MSM said it is on track to increase capacity utilisation of MSM Johor, which will reduce production cost and improve margins.

Despite the challenging business environment outlook, the group remains optimistic on its turnaround plan and its ability in achieving sustainable growth.