Malayan Flour Mills sees opportunities and challenges with geopolitical uncertainy

The Star

21-05-2025

PETALING JAYA: Malayan Flour Mills Bhd (MFM) believes that the changing geopolitical scene is a dynamic phenomenon that presents both opportunities and challenges for nations around the world.
In a filing with Bursa Malaysia, the flour milling company said despite these challenges, it expects to be profitable for the financial year ending 2025.
For the first quarter ended March 31, 2025 (1Q25), MFM's net profit dipped to RM33.09mil from RM37.9mil in the previous corresponding quarter, due to lower profits from the flour and grain trading segment and others segment.
Revenue in 1Q25 rose to RM799.29mil from RM751.60mil a year earlier, mainly contributed by higher sales volume from the flour and grain trading segment, amidst lower selling price.
Going forward, the company said commodity prices of wheat and grain remain volatile and continue to be impacted by the persisting uncertainties in macroeconomic and geopolitical considerations.
'The company will continue to monitor the impact of commodity prices arising from the global supply and demand dynamics and adjust selling prices accordingly and to diversify the sources of wheat, corn and soybean meal.'
Globally, MFM said the poultry industry is adversely impacted by highly Pathogenic Avian Influenza outbreaks, resulting in disruptions in the global supply of grandparent day-old-chicks (DOCs), parent stock DOCs and commercial DOCs.
'Locally, the uplifting of chicken subsidy and ceiling price by the government is seen as a positive development for chicken producers once the supply and demand for poultry reaches an equilibrium.
'However, this equilibrium has been impacted by the weather, which impacts poultry output and import of poultry products from neighbouring countries.'
With the expected recovery in the demand and the company's synergistic partnership with Tyson International Holding Co, MFM said it is optimistic of its outlook for 2025 and beyond.