PETALING JAYA: Chemical Company of Malaysia Bhd’s (CCM) net profit was slashed 44% year-on-year (y-o-y) in the third quarter of financial year 2018, mainly due to the absence of profit from its now-discontinued operations and higher tax expenses.
The chemicals and polymers producer told Bursa Malaysia that its net profit fell to RM4.57mil from RM8.2mil a year earlier.
The absence of profit from CCM’s discontinued pharmaceuticals business, CCM Duopharma Biotech Bhd , dragged down the earnings.
To recap, in 2017, CCM distributed its entire shareholding in CCM Duopharma to its shareholders. Following the distribution, CCM Duopharma has ceased to be a subsidiary of the company.
Meanwhile, CCM’s tax expenses jumped by 15 times y-o-y to RM5.53mil in the third quarter and contributed to the decline in net profit. Revenue-wise, CCM saw an increase of 8% y-o-y to RM95.07mil, primarily because of improved revenue from both chemicals and polymers divisions.
The company did not declare any dividend for the quarter in review. Earnings per share was 2.73 sen.
Cumulatively, in the first nine months of financial year 2018, CCM’s bottom line was down by 25.25% y-o-y to RM17.07mil.
The company’s revenue in the nine-month period, however, improved by 15.6% to RM200.41mil from RM173.36mil in the previous year corresponding period, supported by stronger sales in its chemicals and polymer businesses.
On its prospects, CCM said it is “putting strong effort” to expand its chemicals and polymers divisions, since the de-merger of CCM Duopharma.