Kuching (Sarawak), Wednesday, 18 May 2022 – Cahya Mata Sarawak Berhad (“CMS” or “the Group”) is pleased to announce that the Group recorded revenue of RM214.04 million for the first quarter ended 31 March 2022 (“1Q 2022”), an increase of 6% compared with the preceding year’s corresponding quarter’s (“1Q 2021”) revenue of RM202.06 million.
The Group’s profit before tax (“PBT”) of RM83.86 million in 1Q 2022 improved by RM1.30 million in comparison with 1Q 2021’s PBT of RM82.56 million mainly due to better performance recorded by the Cement and Road Maintenance Divisions and higher share of results of associates by RM15.42 million. The core earnings reported for 1Q 2022 were considerably better as the PBT reported in 1Q 2021 also included one-off gains coming from the disposal of shares in Kenanga Investment Bank Berhad (KIBB) amounting to RM28.52 million and disposal of land and investment properties of RM12.74 million. Furthermore, as at 1Q 2022, the Group’s Net Tangible Asset (NTA) per share is RM2.87.
Despite challenges stemming from the higher raw material costs and global supply-chain constraints, the Group’s key initiatives continued to be implemented across all business divisions in response to the gradual recovery of the economy and to sustain the business. The Group achieved the following results for 1Q 2022:
The Cement Division reported a 7% increase in revenue of RM136.64 million and 34% higher PBT of RM29.15 million in 1Q 2022 as compared to revenue of RM128.17 million and PBT of RM21.74 million in the previous corresponding quarter. The higher profits in 1Q 2022 was mainly attributable to the improved demand for cement and continual cost control measures implemented by the Division.
The Trading Division reported a PBT of RM0.95 million, a decrease of 45% in comparison to 1Q 2021’s PBT of RM1.72 million. The lower PBT in 1Q 2022 was due to delay in the take up of telecommunication products and the recent price hike in construction materials that led to lower customer orders.
The Road Maintenance Division reported a 36% higher revenue of RM36.3 million and 500% increase in PBT of RM10.04 million in 1Q 2022 over previous year’s corresponding quarter revenue of RM26.73 million and PBT of RM1.67 million.
The Property Development Division reported a higher PBT of RM6.74 million in 1Q 2022 in comparison to PBT of RM2.90 million in 1Q 2021 despite recording an 8% lower revenue. Higher PBT in 1Q 2022 was mainly due to a downward revision of costs for various projects.
Phase 1 of the integrated phosphate complex is still under construction in 1Q 2022 and it is scheduled for commissioning in the third quarter of 2022. The decrease in gross loss before tax was mainly due to lower unrealised foreign exchange loss of RM1.91 million in the current quarter as compared to RM9.20 million loss in 1Q 2021 arising from conversion of borrowing denominated in US dollar.
The Strategic Investments share of profits from its associates in 1Q 2022 was higher in comparison to 1Q 2021, mainly due to better performance of an associate by RM19.55 million.
The Group had also paid in full its Islamic Medium Term Notes of RM500.0 million in nominal value on its scheduled maturity date of 5 May 2022, via its internal funds. With the redemption, there are no outstanding Islamic Medium Term Notes under its Sukuk Programme of up to RM2.0 billion in nominal value.
Cahya Mata Sarawak will continue to safeguard the health of employees, vendors and customers even as its business divisions ramp up operations and at the same time, ensure robust governance practices are implemented through the roll-out of accountability and risk-management procedures. The Group will continue to seek opportunities for sustainable long-term growth as the business outlook improves in the coming months on stronger economic growth supported by domestic activities and external demand.
As at close of business on 18 May 2022, the Group’s share-price is RM1.09.