GROUP FINANCIAL REVIEW EBITDA RM282.31 million Gains from disposal of MSM Perlis RM91.81 million Revenue RM2.26 billion Profit after tax RM125.35 million MSM has made significant progress on the turnaround of the Company despite operating in a very challenging environment. The Group registered a healthy profit after tax of RM125.35 million, a significant improvement from a loss after tax of RM71.23 million in FY2020. This was achieved amidst significant COVID-19 related impacts including substantial increase in the price of raw sugar due to supply and demand as well as changing weather in raw sugar producing countries which affected the sugarcane crop. Additionally, freight costs increased significantly as a result of shortages of containers and vessels due to border restrictions and slow turnaround time at ports. Furthermore, local sugar consumption in Malaysia was also affected by reduced productivity in the hospitality and food and beverage sectors, as well as the slowdown in social and economic activities as a result of movement restriction orders to curb the spread of COVID-19. As a result of these impacts, the Group’s gross profit margin reduced by 4% from the prior year. However, the Group recorded a profit before interest, tax, depreciation and amortisation (EBITDA) of RM282.31 million, an increase of more than 100% from prior year of RM116.68 million. The Group’s statutory net profit of RM125.35 million includes the impact of gain from disposal of a subsidiary of RM91.81 million as well as depreciation charges of RM82.84 million. WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 66
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