Cahya Mata remains cautiously optimistic


For the first quarter ended March 31, 2024, Cahya Mata’s net profit dipped to RM38.25mil from RM42.56mil a year ago.

PETALING JAYA: Cahya Mata Sarawak Bhd remains cautiously optimistic about its prospects for 2024, despite challenges stemming from the high foreign exchange rate and the outcome of the ongoing arbitration for Cahya Mata Phosphates.

In a statement, the group said it will continue to refine its strategies to align with growth and value opportunities.

“Through the pursuit of cost-optimisation activities, the group aims to strengthen its market position and deliver sustainable value to stakeholders.”

For the first quarter ended March 31, 2024, Cahya Mata’s net profit dipped to RM38.25mil from RM42.56mil in the previous corresponding period, while revenue improved to RM277.37mil from RM275.67mil a year earlier.

Pre-tax profit from operations was higher at RM57.26mil compared to RM39.26mil a year earlier.

The company said the increase in pre-tax profit was driven by strong performances in the oiltools, road maintenance and property development divisions.

“Additionally, profit contributions from associates increased by 22% to RM17.03mil from 2023’s contribution of RM14.01mil,” it said.

Breaking down its results during the quarter, Cahya Mata said its cement division reported a revenue of RM149.18mil and a pre-tax profit of RM26.8mil, representing a 6% decrease in revenue and a 29% decrease in pre-tax profit from a year earlier.

“The decline was mainly due to lower sales volumes attributable to prolonged rainy weather affecting construction activities.”

The road maintenance division achieved a revenue of RM27.14mil and a pre-tax profit of RM5.32mil, reflecting a 24% increase in revenue and a turnaround from a pre-tax loss of RM110,000 in 2023 to a pre-tax profit of RM5.32mil in 2024.

“The improvement was due to higher revenue from road maintenance, third-party and instructed works, coupled with increased gross profit margins.”

The property development division reported a revenue of RM13.75mil and a pre-tax profit of RM6.19mil, marking a 27% increase in revenue and a 560% increase in pre-tax profit compared to 2023.

“The rise in profitability was mainly due to gross margin recognition on a deemed land sale transaction.”

Meanwhile, the phosphates division recorded a pre-tax loss of RM19.23mil in 2024, an improvement from a loss of RM25.7mil in 2023. “This was primarily due to lower operating costs,” it said.

Meanwhile, the company’s oiltools division reported a revenue of RM78.15mil and a pre-tax profit of RM14.84mil, showing a 17% increase in revenue and a 222% increase in pre-tax profit compared to 2023.

The group’s strategic investments division, meanwhile, posted a pre-tax profit of RM6.67mil in 2024, up from RM4.50mil in 2023, reflecting improved contributions from various investments.

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