By DayakDaily Team
KUCHING, Nov 26: Cahya Mata Sarawak Berhad delivered a strong financial performance for the first nine months of 2024 (PE2024) ending Sept 30, 2024, with a normalised profit before tax (PBT) of RM147.6 million.
This marks a significant 72.1 per cent increase compared to the normalised PBT of RM85.7 million for the corresponding period in 2023 (PE2023).
The Group recorded total revenue of RM855.3 million and a PBT of RM84.2 million for the nine-month period.
After navigating challenging market conditions in the first half of the year, Cahya Mata achieved a substantial turnaround in Q3 2024, with revenue increasing by 8 per cent to RM299.9 million compared to RM278.0 million in Q2 2024.
This improvement was driven by strong performances in the Cement and Road Maintenance Divisions.
However, the Group reported a loss before tax (LBT) of RM23.4 million for Q3 2024, impacted by an unrealised foreign exchange (forex) loss of RM74.9 million due to the revaluation of RM-denominated shareholder loans to Cahya Mata Phosphates Sdn Bhd, which operates with a USD functional currency.
Excluding this unrealised forex loss, the Group’s normalised PBT for Q3 2024 stood at RM51.5 million.
Operationally, Cahya Mata demonstrated financial resilience with Net Tangible Assets (NTA) per share at RM3.02 and Net Assets per share at RM3.09. The Group’s gearing ratio remained low at 7.4 per cent, underscoring its prudent leverage strategy, while its cash position strengthened to RM434.6 million.
“We believe that the normalised profit for PE2024 more accurately reflects our operational performance for the period, showcasing our effective cost management strategies and commitment to sustainable growth,” the Group stated in a media release today.
On business segments’ performance, the Cement Division achieved a PBT of RM108.5 million in PE2024, up 20 per cent from RM90.5 million in PE2023, despite a 4 per cent drop in revenue to RM471.9 million. The improved profitability was attributed to lower imported clinker prices and enhanced operational efficiencies.
The Road Maintenance Division recorded revenue of RM92.2 million and PBT of RM11.0 million, representing year-on-year increases of 24 per cent and 116 per cent, respectively. Growth was driven by higher revenue from road maintenance and instructed works, coupled with an increased gross profit margin.
The Property Development Division reported a PBT of RM3.0 million on revenue of RM30.9 million, representing declines of 54 per cent and 30 per cent compared to PE2023. The weaker performance was due to slower property sales
The Phosphates Division registered a loss before tax of RM125.4 million, higher than the RM99.1 million loss in PE2023. The loss was primarily due to unrealised forex losses resulting from the strengthening of the RM against the USD.
The Oiltools Division achieved a PBT of RM37.5 million on revenue of RM219.3 million, reflecting increases of 45 per cent and 4 per cent year-on-year. Strong performance in Indonesia and the UAE, alongside improved profit margins, contributed to the division’s growth.
Cahya Mata remains optimistic about its 2024 prospects despite global economic uncertainties.
“We expect cement demand to strengthen, driven by significant infrastructure projects announced by the Sarawak government, thereby enhancing the Group’s overall prospects. However, we recognise that broader economic volatility may persist due to inflationary pressures and supply chain disruptions stemming from global geopolitical uncertainties,” the Group said.
To effectively navigate this landscape, the Group is dedicated to improving operational, logistics, and distribution efficiencies.
“We aim to seize emerging opportunities that align with our strategic objectives while fostering innovation and sustainability across our operations. By prioritizing stakeholder engagement and consistently delivering value, we are committed to strengthening our market presence and driving long-term profitability for our shareholders, all while making a positive impact on the communities we serve,” it added. — DayakDaily
