MSM WILL BE BADLY AFFECTED BY HIGHER RAW SUGAR PRICE NOW......AND FGV, TOO

50% YTD jump in raw sugar prices to 22 cents a pound. This will eat into the profit margin for MSM Malaysia, 51%-owned by FGV, due to the fixed price ceiling on retail sugar prices of RM2.84/kg.

Estimate that at current (end Oct 2016) raw sugar prices, MSM will be barely profitable in the retail sugar segment, which makes up 38.5% of total volumes of sugar sold.