Central Global returns to the black in 1Q

Central Global Bhd group managing director Chew Hian Tat.

KUALA LUMPUR: Central Global Bhd (CGB) has returned to the black with a net profit of RM1.89mil in the first quarter ended March 31, against a net loss of RM1.03mil a year go.

The construction and masking tape manufacturer’s revenue for the quarter rose 25.25% to RM47.04mil from RM37.6mil a year earlier.

It said revenue from the construction segment increased to RM31.06mil in the first quarter as compared to the corresponding quarter last year of RM20.2mil.

The increase in revenue was mainly attributable to the newly secured project, RYRT Lahad Datu Phase 1 Water Supply System and the accelerated work progress on the Montage project.

Consequently, the construction segment recorded a profit before tax (PBT) of RM1.98mil for the current quarter as compared to a loss before tax (LBT) RM940,000 in the corresponding quarter last year.

Meanwhile, the manufacturing segment made up the remaining 34% or RM15.99mil of the group’s total revenue as compared to RM17.36mil last year. The lower revenue recorded during the reporting period was mainly due to the drop in export sales.

CGB group managing director Chew Hian Tat said its continuous efforts to turn a profit have finally borne fruit after several years of being in the red.

“This is in part due to our new business strategy to pivot our focus to the

construction segment in the past year.

“Moving forward, we will continue to focus on completing the on-going projects in hand namely the Montage project and the Lahad Datu Phase 1 Water Supply System project and the finalising of the final account for the completed Beacon Executive Suite and Eco Horizon projects,” he said.

He added that it would also commence the execution of its newly secured projects namely the Quinton condominium, and the building service work for Sri Bayu apartment and the Montage condominium.

“As the construction segment in Malaysia is expected to remain challenging, we have taken a precautionary measure by reorganising our internal structure to enhance our efficiency and productivity while simultaneously optimising our cash flow,” Chew said.

“Having said that, our heightened focus on the construction segment doesn’t mean that the manufacturing segment is neglected. We’re expecting additional mixers to arrive this month which would result in an increase of our mixing output volume by 20% to 215 metric tons monthly from our current capacity of 179 metric tons monthly,” he added.

Barring any unforeseen circumstances, CGB is cautiously optimistic that it will continue to generate satisfactory performance for the rest of the financial year.

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