MSM Malaysia Holdings Berhad Annual Report 2021

Profit After Tax RM125.35 million Overall Gearing Ratio 26% Major Market Share Dominance Scaling New Heights We hit new highs in FY2021 as MSM recorded more than 100% increase in net profit. This was on the back of revenue growth of 3.7% at RM2.26 billion from RM2.18 billion in FY2020, and the gain from the disposal of MSM Perlis Sdn Bhd of RM91.81 million. The increase in revenue is attributable to the increase in ASP for Wholesale segment and improved premiums for Industry and Export segments. Overall, Profit After Tax (PAT) for the year was RM125.35 million, a significant improvement against the Loss After Tax (LAT) of RM71.23 million in FY2020. Excluding the disposal gains of MSM Perlis, MSM recorded an operational profit of RM122.48 million. The Group recorded higher Profit Before Tax (PBT) from continuing operations with improved margins, lower expenses and lower finance cost as a result of lower borrowings. The continued focus on strengthening the Group’s balance sheet has yielded positive results. As of 31 December 2021, total net assets stood at RM1.71 billion whilst cash and cash equivalents at end of financial period is RM194.78 million which remain relatively in line with previous year’s level of RM195.92 million. The Group’s term loans stood at RM414.12 million, lower compared to RM552.55 million at the end of FY2020. The term loan gearing ratio has seen improvement from 28% in FY2020 to 20% in FY2021, with overall gearing ratio of 26%. The financial turnaround was balanced with improved operations in FY2021. MSM still holds major market share dominance domestically and accompanied by steady domestic and export sales throughout the year. The Board has declared dividends of 3.0 sen per share for FY2021 amounting to RM21.09 million and equivalent to 17% of the FY2021 net profit of RM125.35 million. The detailed Group Financial Review is available on page 66 CHAIRMAN’S ADDRESS WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 52

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