Kuala Lumpur: MSM Malaysia Holdings Bhd swung to a net loss of RM397.25 million for the financial year ended Dec 31, 2025 (FY2025) from a net profit of RM31.25 million in the previous year.
The loss was mainly due to a RM359.96 million impairment of non-financial assets, it said in a filing with Bursa Malaysia.
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The producer of Malaysia’s refined sugar brand, Gula Prai, also saw its revenue decline to RM3.09 billion in FY2025 from RM3.54 billion in FY2024, dragged by lower average selling price and sales volume.
For the fourth quarter ended Dec 31, 2025 (4Q FY2025), MSM recorded a net loss of RM366.63 million versus a net profit of RM71.70 million in 4Q FY2024, while revenue slipped to RM783.08 million from RM943.60 million previously.
Commenting on the performance, group chief executive officer Dr Aini Shahar said the impairment is a prudent accounting exercise to align the “carrying value” of MSM Johor’s assets with current realities.
“It is a non-cash adjustment, based on updated assumptions regarding incentive support and plant performance, and it ultimately strengthens the quality and transparency of our financial reporting,” she said in a separate statement.
Aini emphasised that the adjustment has no immediate impact on the group’s operational liquidity, and the group’s focus remains firmly on execution.
Looking ahead, MSM anticipates the operating environment to remain challenging in 2026 amid intensified competition from imported sugar, as global oversupply in the refined sugar market has resulted in a surplus within Malaysia, contributing to a contraction in MSM’s market share.
In response, it said the group is streamlining and optimising its operations as part of its efforts to return to profitability. “Additionally, the group is actively engaging with the government to finalise a sustainable pricing framework, aimed at protecting national food security and securing the future of the local sugar industry,” it added.
