KUALA LUMPUR: Malayan Flour Mills Bhd's net profit fell 75.4 per cent to RM31.6 million for the second quarter (Q2) ended June 30, 2022 from RM128. 31 million a year ago.

However, the company's revenue rose 14.8 per cent to RM661.7 million in Q2 2022 from RM576.2 million registered in the same quarter last year.

"This was attributed to higher sales recorded in the flour and grains trading segment which increased by 14.3 per cent," it said.

Malayan Flour said it recorded an operating profit of RM30.8 million in Q2 2022 compared to an operating profit of RM37.8 million in Q2 2021, primarily due to lower profits from flour and grains trading segment.

For the six-month period, Malayan Flour's net profit fell to RM51.96 million from RM145.97 million last year, while revenue rose to RM1.30 billion from RM1.11 billion previously.

Executive deputy chairman Teh Wee Chye said amid the challenging operating conditions globally, the company continued to put in its best efforts to run its flour milling business efficiently.

Chye said the company was doing its best to source for ready supply of raw materials to ensure uninterrupted operations in meeting the rising demand of flour in Malaysia, Vietnam and Indonesia. 

"While the flour milling business continues to be our bread and butter, the bright prospects for Malayan Flour is our poultry integration operations through the tie-up with Tyson Foods, which are beginning to emerge as the key growth driver for the company.

"With the expected improvement in capacity utilization of our primary processing plant, the upside is promising," he said.

Malayan Flour declared an interim dividend of 1.5 sen per share to be paid on Sept 23.