MFM posts 49% profit jump in 2Q, declares 1.5 sen dividend

KUALA LUMPUR: Malayan Flour Mills Bhd (MFM), which posted a 49% jump in net profit for the second quarter ended June 30, is optimistic about its outlook for the rest of the year despite challenges in Indonesia.

“We will continue to navigate these with prudence, while ensuring a reliable supply of staple foods for the market,” executive deputy chairman cum managing director Teh Wee Chye said in a statement.

In 2Q25, the staple foods producer’s net profit rose to RM28.1mil from RM18.8mil a year earlier, lifting earnings per share to 2.27 sen from 1.52 sen.

MFM said its stronger 2Q25 bottom line was driven by solid performance from the flour and grain trading (FGT) business in Malaysia and Vietnam, which boosted group revenue 6.4% year-on-year to RM800.2mil from RM751.9mil, along with positive contributions from its 30%-owned joint venture, PT Bungasari Flour Mills in Indonesia.

In the first six months, MFM posted a net profit of RM61.1mil, up 7.8% from RM56.7mil, while revenue grew a little over 6% to RM1.6bil from RM1.5bil.

“The strong performance in 2Q25 reflects the improved market dynamics in the countries we operate in; while the flour business in Malaysia and Vietnam continued to sustain their performance, the poultry segment saw higher broiler production volumes to meet the increasing demand in the domestic market.

“At the same time, our joint venture flour operations in Indonesia managed to turnaround with a modest profit.

“Our diversified business model certainly continues to provide balance and resilience in the group’s profitability,” Teh said.

MFM has declared an interim dividend of 1.5 sen per share for the financial year ending Dec 31, 2025 with an ex-date on Sept 10 and a payment date on Sept 25.

The total dividend payout of RM18.6mil represents 30.4% of 1H25 net profit.