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68 MSM MALAYSIA HOLDINGS BERHAD WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOW WE OPERATE
ANNUAL INTEGRATED REPORT 2021

GROUP FINANCIAL

REVIEW

KEY FINANCIAL PERFORMANCE INDICATORS

MSM uses several key financial indicators to measure its financial performance. These key
financial indicators are: Revenue, Profit Before Tax (PBT), Return on Capital Employed (ROCE),
Net Debt and Financing to EBITDA, and Cash Balance Position. The Board and Management
regularly review these financial indicators to measure the Group’s performance against
set targets.

Revenue Profit Before Interest, Zakat and Tax (PBIZT) and
ROCE

The Group’s revenue increased by 3.4% to RM2.26 billion PBIZT increased 83% from RM68.80 million to RM125.56
in FY2021 on the back of improved selling prices across all million. Due to this increase, the Group’s ROCE increased
customer segments. The Wholesale Segment posted a from 2.5% to 4.4%. Subject to unforeseen market
14% increase in revenue to RM842 million in FY2021 conditions, we are working towards achieving a better
(RM738 million in FY2020) despite recording lower performance in the future.
volume from the previous year. Meanwhile, the Industries
Segment’s revenue decreased by 7% at RM894 million
in FY2021 (RM963 million in FY2020). Around 20% of the Profit Before Zakat and Tax (PBZT)
revenue is generated outside Malaysia. In FY2021,
Export Segment’s revenue increased by 8% at RM506 The Group’s PBZT from Continuing operations increased
million (RM467 million in FY2020) as a result of increased 126% to RM81.10 million in FY2021 due to better raw
Premiums. sugar management. Discontinued operations contributed
RM88.74 million in PBZT, mainly from gain from disposal of
Revenue Contribution (RM million) subsidiary, as mentioned above. The Group’s consolidated
PBZT of RM169.84 million is a marked improvement
from a loss position of RM39.24 million in FY2020.
842 894 506

Finance Costs

Wholesale Segment Finance costs increase from RM36.78 million in FY2020 to
Industries Segment RM47.05 million in FY2021 is mainly due to a loan modification
Export Segment cost of RM9.75 million recorded in September 2021 from
additional repayments made to the Group’s term loans of
RM114.26 million. These advanced repayments represented a
change in the present value of the term loan which resulted in
a loan modification cost to be recorded in FY2021. In contrast,
in FY2020, the Group made an additional repayment of
RM40 million in December 2020 and recorded a loan
modification credit of RM11.70 million.