MEDIA STATEMENT
CAHYA MATA REPORTS IMPROVED REVENUE FOR THE FIRST NINE MONTHS OF 2023
- PE2023's revenue increased by 24% as compared to PE2022
- Turnover increases mainly due to Cement and Oiltools Divisions
- Lower PBT and PATNCI due to several factors including lower share of profits from associate companies
Kuching (Sarawak), Wednesday, 29 November 2023 - Cahya Mata Sarawak Berhad (“Cahya Mata" or "the Group") is pleased to announce its financial results for the period ended 30 September 2023 (“PE2023"). The Group reported a revenue of RM868.09 million for PE2023, an increase of 24% in comparison to the preceding year's corresponding period's (“PE2022”) revenue of RM702.17 million. Cahya Mata's revenue increased mainly due to higher contributions from Cement and Oiltools Division.
The Group's profit before tax (“PBT”) from operations was RM98.28 million in PE 2023, a drop from the PBT of RM307.01 million reported during PE2022. The lower PBT stemmed from the one-off gains from the recognition of negative goodwill of RM62.47 million arising from the acquisition of Oiltools group and reversal of impairment of RM37.69 million on OM Materials investment and loan in PE2022. In addition, profit contributions from associates decreased by 66% to RM43.05 million from PE2022's contribution of RM124.84 million. The Group no longer recognises profits from an associate which was disposed of in December 2022.
Business Segments' Performance
Cement Division reported a 8% higher PBT of RM90.50 million in PE2023 over PE2022's PBT of RM83.52 million mainly attributable to higher sales and lower input cost.
Road Maintenance Division reported a PBT of RM5.11 million, a decrease of RM5.76 million in comparison to the preceding year's PBT of RM10.87 million. The lower PBT was due to lower sales and gross profit recorded in PE2023.
Property Development Division reported a lower PBT of RM6.66 million in PE2023 in comparison to PBT of RM26.72 million reported in PE2022. The lower PBT in PE2023 was mainly due to slower sales of properties and no land sales in PE2023.
Phosphates Division reported a higher loss before tax (“LBT") of RM99.10 million in PE2023 in comparison to PE2022's LBT of RM33.56 million as the plant was in the construction stage during PE2022 and most of the costs incurred then were capitalised. In PE2023, the commissioning and finance related costs incurred have been recognised in the statement of comprehensive income.
Oiltools Division has contributed a PBT of RM25.80 million in PE2023 to the Group's results in comparison to PE2022 PBT RM62.98 million which was primarily attributable to the recognition of negative goodwill on consolidation amounting to RM62.47 million upon the completion of the acquisition during PE2022.
Share of results of associates contributed lower profits in PE2023 as compared to PE2022 as the Group no longer recognises profits from an associate which was disposed of in December 2022.
Strong Balance Sheet Fundamentals
As at PE2023, total assets stood at RM4.47 billion while shareholders' funds at RM3.45 billion.
The Group's cash position remains healthy at RM524.49 million and its net assets per share stands at RM2.99 per share as at 30 September 2023 (31 December 2022: RM3.00).
Prospects
The Board of Directors continues to hold a longer-term view that the infrastructure and rural development activities will remain active. Cahya Mata expects to benefit from the strong economic growth in Sarawak.
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