MSM narrows losses on steady demand as sugar prices slide

KUALA LUMPUR: MSM Malaysia Holdings Bhd expects the sugar industry to remain challenging in 2025, amid high input costs and volatile raw sugar prices, driven by global supply fluctuations.

“Despite these headwinds, domestic sugar demand is expected to peak towards year-end, supported by festive consumption trends.

“The group continues to reinforce domestic footprint and mitigate export pricing challenges, albeit steady demand, and exploit value-added products market opportunities.

“Furthermore, the group streamlining and optimising operations to ensure profitability,” said its acting group chief executive officer Hasni Ahmad in a statement.

For the second quarter ended June 30, 2025 (2Q25), the sugar producer narrowed its net loss to RM29.7mil, or 4.23 sen per share, from a net loss of RM32.4mil, or 4.61 sen per share, in the same period a year earlier.

Revenue for the quarter slipped to RM812.7mil from RM833.1mil in 2Q24, mainly due to lower average selling prices, notably in the industrial and export categories, despite higher sales volume.

For the first half, the company posted a net loss of RM26mil compared to a net profit of RM9.3mil a year earlier, while revenue declined 10.2% to RM1.6bil from RM1.7bil.

The group reported a lower capacity utilisation factor of 49% in 2Q25, compared to 50% in 2Q24, due to production curtailment to manage inventory in both refineries, but sustained by consistent efficiency yield.

In its filing with Bursa Malaysia, MSM said it remains actively engaged with the government through the Joint-Sugar Industry platform to finalise a sustainable pricing framework and implement import controls on refined sugar – measures it views as critical to safeguarding national food security and ensuring the long-term viability of the domestic sugar industry.