Hume Cement sees resilient outlook despite geopolitical, energy cost pressures


PETALING JAYA: Hume Cement Industries Bhd's prospects remain supported by resilient domestic construction activity and ongoing infrastructure spending despite rising geopolitical and energy-related uncertainties, as the group continues to focus on cost optimisation and operational efficiency.

In its recent third quarter ended Mar 31, 2026 (3QFY26) the company said the operating environment remained challenging amid heightened geopolitical tensions, particularly the ongoing conflict in the Middle East, which has contributed to energy price volatility and broader cost pressures.

“Management is proactively monitoring developments and implementing measures to manage cost volatility and maintain operational stability. Barring any unforeseen circumstances, the board expects the group’s performance for the financial year to be satisfactory,” it said in its Bursa Malaysia filing.

Hume Cement noted that sustained development expenditure and infrastructure projects in Malaysia continue to underpin market activity, providing some support for demand.

In 3QFY26, Hume Cement posted revenue of RM235.9mil, down from RM277.7mil a year earlier, mainly due to lower cement sales volumes and weaker concrete sales following the cessation of its concrete segment operations in Peninsular Malaysia.

Pretax profit, however, surged to RM264.9mil in the period from RM58mil in 3QFY25 while net profit rose to RM243.75mil from RM40.64mil, respectively.

The sharp increase was largely driven by a one-off gain arising from the disposal of a subsidiary during the current quarter.

Excluding the disposal gain, the group underlying profitability still improved year-on-year, supported by lower input and production costs as a result of ongoing efficiency enhancement initiatives.

For the nine-month period (9MFY26), Hume Cement recorded revenue of RM797.1mil compared with RM851.2mil in 9MFY25.

Net profits rose to RM369.22mil for the period from RM169.57mil net profit in 9MFY25.

The group attributed the stronger earnings performance to the disposal gain as well as continued reductions in production and operating costs.

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