Cahya Mata Sarawak 1Q net profit down 10%

• But the declines in topline contribution were offset by higher year-on-year revenue across the group’s other segments, led by the road maintenance and property development divisions.

KUALA LUMPUR (May 23): Cahya Mata Sarawak Bhd’s (CMS) (KL:CMSB) net profit fell 10.1% to RM38.25 million for the first quarter ended March 31, 2024 (1QFY2024) from RM42.56 million a year earlier.

Revenue was flat, a 0.6% increase to RM277.37 million versus RM275.67 million previously, according to the diversified group’s bourse filing on Thursday.

CMS’s main revenue-contributing cement division logged a 6.4% dip in revenue to RM149.18 million versus RM159.3 million a year earlier as sales volume dropped due to slow construction activities attributed to bad weather.

Revenue from the strategic investments division also declined 48.4% to RM11.14 million from RM21.58 million previously.

But the declines in topline contribution were offset by higher year-on-year revenue across the group’s other segments, led by the road maintenance and property development divisions.

The road maintenance division logged a 24.3% higher revenue of RM27.14 million compared with RM21.83 million previously, and the property development division reported a 26.7% increase in revenue to RM13.75 million from RM10.86 million.

On FY2024's remaining quarters, the group remains “cautiously optimistic” despite challenges stemming from the strong US dollar and the outcome of ongoing arbitration concerning its 79.07%-owned unit Cahya Mata Phosphates Industries Sdn Bhd (CMPI). 

“Moving forward, CMS 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,” the group added.

CMPI is currently embroiled in arbitration proceedings with state utility firm Syarikat Sesco Bhd over a purchase power agreement (PPA) dispute.

Shares in CMS closed two sen or 1.65% lower at RM1.19, valuing the group at RM1.28 billion.

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