Cahya Mata Sarawak posts 77% rise in 3Q net profit

by **Cals** Thu 27 Nov 2014, 02:13

Cahya Mata Sarawak posts 77% rise in 3Q net profit

KUALA LUMPUR (Nov 26): Cahya Mata Sarawak Bhd (CMSB) ([You must be registered and logged in to see this image.] Financial Dashboard) posted a nearly 77% rise in net profit to RM72.38 million in the third quarter ended Sept 30, 2014 (3QFY14), from RM40.99 million a year ago, on higher contribution from its cement and construction materials & trading (CMT) divisions.
Revenue for 3QFY14 was 23.16% higher at RM413.07 million, from RM335.40 million in the previous corresponding quarter.
In its financial results announcement, the building materials manufacturer said profit before tax (PBT) for its cement division in 3QFY14 was higher by 13%, due to increase in cement prices and sales volume.
Meanwhile, PBT for its CMT division was up by 61%, mainly due to the supply of mild steel polyurethane pipes to Jabatan Kerja Raya by the trading business, and the higher premix sales volume contributed by the state road maintenance, which benefited from JKR’s 2014 Malaysian Road Records Information System fund programme and the federal road maintenance.
“Our third and fourth quarters are typically the strongest and based on the results for the first nine months of 2014, we can expect a strong financial performance for the full year of 2014 for CMSB,” said Group ManagingDirector Datuk Richard Curtis, in a press release by the company today.
For the nine months ended Sept 30, 2014 (9MFY14), net profit was 61.66% higher at RM177.39 million, from RM109.73 million a year ago. Meanwhile, revenue stood at RM1.17 billion, from RM984.09 million in the previous corresponding period.
The better 9MFY14 performance was attributable to the CMT and property development divisions. CMT posted a PBT of RM60.23 million due to more works undertaken and longer road length maintained, as well as the inclusion of share of profit of joint ventures.
CMSB’s property development division’s PBT for 9MFY14 grew to RM46.05 million, against a loss before tax of RM124,000 in 9MFY13, mainly attributed to the recognition of profit from the sale of two parcels of land in Samariang, Sarawak, and one parcel of land in the Isthmus.
“Whilst the operating environment faced by the group will remain challenging, the board expects the group’s financial performance to be good for FY14.
“The group’s strong financial position will enable the Group to invest in new business opportunities, especially in Sarawak,” it added.
CMSB share price closed unchanged at RM4.45 today, giving it a market capitalisation of RM4.63 billion.