Cahya Mata chalks up higher revenue for PE30

KUCHING: Cahya Mata Sarawak Berhad notched up a notable upswing in its revenue for the period ending Sept 30, 2023 (PE30).

The Group reported revenue of RM868.09 million, reflecting a substantial 24 per cent increase compared to the same period in 2022, which recorded a total of RM702.17 million in revenue.

Cahya Mata  said in a statement the surge in revenue was primarily driven by heightened contributions from the Cement and Oiltools Division.

“The Group’s profit before tax (PBT) from operations was RM98.28 million in PE2023, a drop from the PBT of RM307.01 million reported during PE2022.

“The lower PBT stemmed from the one-off gains from the recognition of negative goodwill of RM62.47 million arising from the acquisition of Oiltools Group and the reversal of impairment of RM37.69 million on OM Materials investment and loan in PE2022.

“In addition, profit contributions from associates decreased by 66 per cent to RM43.05 million from PE2022’s contribution of RM124.84 million. The Group no longer recognises profits from an associate that was disposed of in December 2022.”

Among the business segments, the Cement Division reported an 8 per cent increase in PBT at RM90.50 million, attributed to higher sales and lower input costs.

On the other hand, the Road Maintenance Division recorded a PBT of RM5.11 million, a decrease of RM5.76 million in comparison to the preceding year’s PBT of RM10.87 million due to lower sales and gross profit.

The Property Development Division reported a lower PBT of RM6.66 million in comparison to the PBT of RM26.72 million reported in PE 2022, which was mainly attributed to slower property sales and no land sales in Q3 2023.

The Phosphates Division, undergoing construction in 2022, reported a higher loss before tax (LBT) of RM99.10 million in 2023.

This increase was associated with the recognition of commissioning and finance-related costs in the statement of comprehensive income.

Oiltools Division contributed a PBT of RM25.80 million, a decrease from the previous year (RM62.98 million), primarily due to the recognition of negative goodwill on consolidation amounting to RM62.47 million upon the completion of the acquisition during PE2022.

The statements added that the share of results of associates contributed lower profits in PE2023 as compared to PE2022 as the Group no longer recognises profits from an associate that was disposed of in December 2022.

Despite the dip in PBT, the Group maintains a strong balance sheet, with total assets standing at RM4.47 billion and shareholders’ funds at RM3.45 billion.

As of Sept 30, the Group’s healthy cash position of RM524.49 million and net assets per share of RM2.99 underscore its resilient financial standing.

Looking ahead, the board of directors continues to hold a longer-term view that infrastructure and rural development activities will remain active. Cahya Mata expects to benefit from the strong economic growth in Sarawak.