69 ANNUAL INTEGRATED REPORT 2021 ADDITIONAL INFORMATION HOW WE ARE GOVERNED REINFORCING SUSTAINABILITY Current Strengths • One of the largest sugar refiners in the global sugar industry with a production capacity of 2.05 million tonnes • Over 57 years’ experience in sugar refining • Serving more than 260 customers locally and internationally • MSM holds 8% of the export market share in the Asia Pacific region • The Gula Prai brand ranked 3rd as the topmost chosen FMCG brands9 FGV’s Sugar business under MSM recorded a turnaround performance in FY2021 upon execution of strategies to streamline resources, hedge costs proactively, strengthen customer engagement and heightened ESG commitments. In the face of a challenging year of prolonged pandemic impacts, proactive and responsive actions led the way forward. A significant increase in profit for the year was obtained through stronger margin gains bolstered by the achievement of higher Average Selling Price (ASP) of refined sugar and lower hedged pricing on raw sugar amidst an environment of continued weak demand. Quick response to unexpected operational disruptions and delays ensured steadfast progress was achieved on several fronts including improving the capacity utilisation of our Johor refinery and reducing impairment losses on imported sugar. The year also saw several environmental compliances concerns raised by the Department of Environment (DOE) on the sugar refineries’ waste discharge. These were addressed through positive engagement with the authorities and affected communities, which led to affirmative collaboration with Penang’s DOE on green initiatives to preserve and conserve the environment. Key highlights for the year include securing a contract worth an estimated RM290 million to supply refined sugar to The Coca-Cola Company for both domestic and international production, driving the business’s expansion to wider market across the region. The achievement is a testament to our reliability, quality and commitment to sustainability across the sugar refining value chain. MSM had also signed an agreement with Wilmar to collaborate in the establishment of a sustainable sugar supply chain. PERFORMANCE SUMMARY 9 Based on Kantar’s Asia Brand Footprint 2021 From left • Sanuri Saari – Head of operations, Sungai Buloh Warehouse • Cheah Poh Lye – Head of operations, MSM Prai Berhad • Wan Anniza S.M. Jamaluddin – Head, Legal Affairs • Mohd Bakhtiar Mohd Pahroraji – Head, Group Human Resource • Hasni Ahmad – Group Chief Operating Officer • Syed Feizal Syed Mohammad – Group Chief Executive Officer • Ab Aziz Ismail – Chief Financial Officer • Ahmad Fer-Rouse Ahmad Khairuddin – Head, Corporate Governance & Risk Management • Abdul Hadi Karim – Head, Corporate Strategy & Investor Relations • Muhammad Irfan Gobinath Abdullah – Head of operations, MSM Sugar Refinery (Johor) Sdn Bhd
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