Group chief executive officer Datuk Khairil Anuar Aziz said the anticipated entry of new healthy variants in the second quarter of 2020 will be a boon for the sugar producer.
“MSM is also paving a strategic path forward and shaping new horizons of growth. Despite the challenges that lie ahead in these uncertain times, we are confident that the seeds of this new strategy will take root and build new possibilities for the group,” he said in a filing with Bursa Malaysia.
Khairil said last year’s combination of an extended glut in global sugar supply, the weakening ringgit, locked-in high raw sugar contracts, and unexpected domestic policy shifts resulting in new competition, caught the company off balance, leading to weaker exports, production and margins for the year.
A net loss of RM299.77 million was posted for the year ended Dec 31, 2019 against a net profit of RM35.66 million the previous year.
“However, the tide has turned. Having stabilised cash flow and rationalised group-wide capacity through consolidation of production in MSM Johor, we are currently turning setbacks into strong points for MSM to kick-start a turnaround journey,” he added.
Khairil also paid tribute to outgoing board chairman Datuk Wira Azhar Abdul Hamid for his contributions to the company.
Meanwhile, Azhar, who is retiring this May, said he was privileged to work with “a good team of people”, along with fellow board members, to steer the company in a new direction towards sustainable results.
“I have always believed that when change is constant, we cannot afford to stand still; the good people at MSM are certainly not standing still,” he noted.
Going forward, he said MSM’s first priorities are profitability and returning value to shareholders, which it expects to achieve by optimising the expanded capacity it now has at hand with MSM Johor.
At 4.43 pm, shares of MSM rose 0.83 per cent to 61 sen.