KUCHING: Cahya Mata Sarawak Berhad (Cahya Mata) announced impressive financial results for the first quarter ended March 31, 2024 (PE2024), highlighting strong revenue and profit before tax (PBT) growth.
Cahya Mata said the Group’s revenue reached RM277.37 million in PE2024, marking a 1 per cent increase from RM275.67 million in the same period last year (PE2023).
PBT surged by 46 per cent, amounting to RM57.26 million compared to RM39.26 million in PE2023.
“The increase in PBT was driven by strong performances in the Oiltools, Road Maintenance, and Property Development divisions,” the company said in a statement.
The Cement Division recorded a revenue of RM149.18 million and a PBT of RM26.80 million in PE2024.
These figures represent a 6 per cent drop in revenue and a 29 per cent decrease in PBT from PE2023, primarily due to reduced sales volumes resulting from prolonged rainy weather that impacted construction activities.
The Road Maintenance Division saw a revenue increase of 24 per cent to RM27.14 million and a turnaround from a pre-tax loss of RM0.11 million in PE2023 to a PBT of RM5.32 million in PE2024.
This improvement was attributed to higher revenues from road maintenance, third-party, and instructed works, alongside better gross profit margins.
The Property Development Division achieved a revenue of RM13.75 million and a PBT of RM6.19 million, reflecting a 27 per cent rise in revenue and a staggering 560 per cent increase in PBT from PE2023.
The impressive profitability was mainly driven by gross margin recognition from a deemed land sale transaction.
The Phosphates Division reported a reduced loss before tax of RM19.23 million, an improvement from the RM25.70 million loss in PE2023, primarily due to lower operating costs.
The Oiltools Division experienced a 17 per cent revenue increase to RM78.15 million and a 222 per cent rise in PBT to RM14.84 million.
The robust performance was driven by strong results in Nigeria and Indonesia, along with improved gross profit margins.
The Strategic Investments Division posted a PBT of RM6.67 million in PE2024, up from RM4.50 million in PE2023, reflecting improved contributions from various investments.
On the other hand, profit contributions from associates increased by 22 per cent to RM17.03 million in PE2024 from RM14.01 million in PE2023, driven by better performance from these investments.
“Looking ahead, the Group remains cautiously optimistic about the prospects for 2024, despite challenges stemming from the high Malaysian Ringgit to US dollar exchange rate and the outcome of ongoing arbitration for Cahya Mata Phosphates.
“Moving forward, Cahya Mata will continue to refine its strategies to align with growth and value opportunities. Through the pursuit of cost optimization activities, the Group aims to strengthen its market position and deliver sustainable value to stakeholders,” the statement added.
