KUALA LUMPUR – Cahya Mata Sarawak Berhad has reported a 46% surge in its profit before tax (PBT) for 1Q2024 at RM57.26 million, a sizable increase from RM39.26 million during the corresponding period of the previous year.
In a statement released today, the group also reported RM277.37 million in revenue for 1Q2024, marking a 1% increase compared to the same period last year.
The increase in PBT can be attributed to robust performances across several key divisions, notably oil tools, road maintenance, and property development.
Additionally, the group witnessed a 22% rise in profit contributions from associates, reaching RM17.03 million, compared to RM14.01 million in the previous year.
Despite a 6% decrease in revenue, the Cement Division maintained a solid PBT of RM26.80 million in 1Q2024. The slight decline in revenue was primarily due to adverse weather conditions affecting construction activities.
The Road Maintenance Division saw a turnaround, reporting a 24% increase in revenue and swinging from a loss before tax in the previous year to a PBT of RM5.32 million in 1Q2024.
The turnaround was driven by increased revenue from various sources and improved gross profit margins.
The Property Development Division reported a 27% increase in revenue and a staggering 560% increase in PBT, reaching RM6.19 million in 1Q2024.
The substantial rise in profitability was attributed to gross margin recognition from a deemed land sale transaction.
While still operating at a loss, the Phosphates Division showed improvement, with a reduced loss before tax of RM19.23 million in 1Q2024, compared to RM25.70 million in the same period last year, mainly due to lower operating costs.
The Oiltools Division demonstrated robust growth, with a 17% increase in revenue and a remarkable 222% surge in PBT compared to 1Q2023.
Strong performance in Nigeria and Indonesia, coupled with improved gross profit margins, drove this growth, the group said.
The Strategic Investments Division posted a PBT of RM6.67 million in 1Q2024, up from RM4.5 million in the previous year.
“Looking ahead, the Group remains cautiously optimistic about the prospects for 2024, despite challenges stemming from the high Malaysian ringgit to US dollar (RM:USD) exchange rate and the outcome of ongoing arbitration for Cahya Mata Phosphates,” the group said.
“Moving forward, Cahya Mata will continue to refine its strategies to align with growth and value opportunities. Through the pursuit of cost optimisation activities, the group aims to strengthen its market position and deliver sustainable value to stakeholders.” – May 23, 2024