• Improving domestic sales performance by maintaining high service and product quality while increasing volumes. • Increased domestic sales volume (including molasses) to 0.83 million MT in 2024 from 0.79 million MT in 2023. • Maintained approximately 60% market share for Gula Prai. • Optimising export performance by strengthening international sales channels. • Increased export sales volume to 0.26 million MT in 2024 from 0.24 million MT in 2023. • Enhancing sustainable manufacturing performance by achieving economies of scale, improving production efficiency, optimising costs, and reducing carbon emission intensity. • Average UF increased to 54% in 2024 from 48% in 2023. • Yield improved to 96.2% in 2024 from 94.6% in 2023, ensuring consistent supply and operational stability. KEY INITIATIVES ACHIEVEMENTS BUSINESS PERFORMANCE REVIEW 2024 HIGHLIGHTS CHALLENGES AND MITIGATION CHALLENGES MITIGATION ACTIONS RESULTS • High volatility in key input costs, impacting operational expenses and pricing stability. • Implemented freight cost hedging through long-lerm contracts (LTC) and maintained high refinery utilisation and yield rates to stabilise costs and enhance efficiency. • Hedged close to market prices, minimising risks, and preventing significant losses. • Market instability due to importers capitalising on global price gaps and Forex rates. • Engaged with the government to address sugar dumping and advocate for regulatory measures. • Acknowledged the government’s plan to regulate import permits and explore a new pricing mechanism to prevent profiteering and arbitrage, while ensuring fair pricing for both producers and consumers. • Excessive import quotas disrupting the domestic market. • Strengthened sales to long-term customers and business partners to reinforce support for local manufacturers. • Increased overall sales volume (including molasses) to 1.09 million MT in 2024, reflecting a 6% rise from 2023. OUTLOOK AND PROSPECTS The Sugar Division remains focused on strengthening its market presence by expanding into neighbouring regions and securing strategic partnerships across industries. Growing the export segment in Asia-Pacific region remains a priority, with efforts aimed at increasing market share and secure higher premiums. Pricing volatility will be managed through cost optimisation, price hedging strategies, and periodic reviews of ceiling and selling prices. Collaboration with stakeholders will also be key to regulating import quotas and ensuring market stability. The sugar industry is expected to remain challenging in 2025, with high input costs, fluctuating raw sugar prices, and uncertainties in global supply chains. Heightened geopolitical tensions and ongoing trade conflicts may further impact trade flows. We continue to engage with the government on a sustainable pricing mechanism and measures to manage imported refined sugar. Despite these challenges, we are committed to strengthening our domestic and export markets while exploring new regional opportunities. Ranked 19th and received the Overall Excellence Award at National Corporate Governance and Sustainability Awards (NACGSA) 2024. R eceived the Platinum Award for Best Annual Report in Bahasa Malaysia, the Silver Excellence Award for Companies with Less than RM2 Billion Market Capitalisation at the National Annual Corporate Report Awards (NACRA) 2024, and the Silver Award at the Australasian Reporting Awards (ARA) 2024. Received Gold Class 1 recognition at the MSOSH Awards 2024 for MSM Prai, MSM Johor, and Sungai Buloh Warehouse. Earned the Silver Award for Employer of Choice and Best CSR at the 24th MIHRA 2024. FTSE Score improved to 3.3, with governance scoring the highest among ESG pillars. 101 Sec 05 DRIVING VALUE THROUGH BUSINESS GROWTH (BUSINESS REVIEW)
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