Cahya Mata Sarawak hits high note with RM868.09 mln revenue in first nine months of 2023, thanks to cement, oiltools divisions

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KUCHING, Nov 30: Cahya Mata Sarawak Berhad (CMS) has reported a revenue of RM868.09 million for the period ending Sept 30, 2023 (PE2023), reflecting a 24 per cent increase compared to the corresponding period in the previous year (PE2022) with revenue of RM702.17 million.

According to a press release issued by CMS, the revenue growth was mainly attributed to higher contributions from its Cement and Oiltools divisions.

Despite the increase in revenue, CMS’ profit before tax (PBT) from operations fell, totaling RM98.28 million in PE2023 compared to RM307.01 million in 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 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 which was disposed of in December 2022,” read the press release.

The Cement Division reported an 8 per cent higher PBT of RM90.50 million in PE2023 over PE2022’s PBT of RM83.52 million mainly attributable to higher sales and lower input cost.

On the other hand, the Road Maintenance Division reported a PBT of RM5.11 million, a decrease of RM5.76 million in comparison to the preceding year’s PBT of RM10.87 million. The lower PBT was due to lower sales and gross profit recorded in PE2023.

The Property Development Division reported a lower PBT of RM6.66 million in PE2023 in comparison to PBT of RM26.72 million reported in PE2022. The lower PBT in PE2023 was mainly due to slower sales of properties and no land sales in PE2023.

Furthermore, the Phosphates Division reported a higher loss before tax (LBT) of RM99.10 million in PE2023 in comparison to PE2022’s LBT of RM33.56 million as the plant was in the construction stage during PE2022 and most of the costs incurred then were capitalised. In PE2023, the commissioning and finance related costs incurred have been recognised in the statement of comprehensive income.

The Oiltools Division contributed a PBT of RM25.80 million in PE2023 to CMS’ results in comparison to PE2022 PBT RM62.98 million which was primarily attributable to the recognition of negative goodwill on consolidation amounting to RM62.47 million upon the completion of the acquisition during PE2022.

“As at PE2023, total assets stood at RM4.47 billion while shareholders’ funds at RM3.45 billion.

“The Group’s cash position remains healthy at RM524.49 million and its net assets per share stands at RM2.99 per share as at Sept 30, 2023 (31 December 2022: RM3.00),” CMS stated.

“The Board of Directors continues to hold a longer-term view that the infrastructure and rural development activities will remain active. Cahya Mata expects to benefit from the strong economic growth in Sarawak.” — DayakDaily