Cahya Mata reports over 26% 2Q profit jump on stronger profit margin

• Earnings per share rose to 3.11 sen from 2.45 sen in 2QFY2023, reflecting enhanced profitability, its bourse filing showed.

KUALA LUMPUR (Aug 27): Cahya Mata Sarawak Bhd (KL:CMSB) said on Tuesday its second quarter net profit jumped 26.6% year on year, driven by stronger gross profit margin in its cement and oiltools divisions due to lower clinker cost and the sale of higher margin products.

Net profit for its second quarter ended June 30, 2024 (2QFY2024) rose to RM33.37 million from RM26.35 million in the same quarter last year, despite revenue dropping 4% to RM277.99 million from RM290.52 million amid lower sales from its cement and property development divisions.

Earnings per share rose to 3.11 sen from 2.45 sen in 2QFY2023, reflecting enhanced profitability, its bourse filing showed. No interim dividend has been declared for the period under review.

For the six months ended June 30, 2024, Cahya Mata’s net profit rose 3.9% to RM71.6 million from RM68.9 million in the corresponding period of 2023, despite a marginal 2% decline in revenue to RM555.4 million from RM566.2 million.

Cahya Mata remains cautiously optimistic about its prospects for the rest of 2024, despite challenges posed by ringgit versus US dollar exchange rate movements, and the outcome of arbitration proceedings involving its subsidiary Cahya Mata Phosphates Industries Sdn Bhd and Syarikat Sesco Bhd over their purchase power agreement dispute.

It also expects cement demand to rise in the second half of the year, driven by infrastructure projects, and will focus on operational efficiencies to mitigate the impact of economic volatility.

“We will continue to remain resilient and focus on realising our full growth potential, leveraging on our healthy balance sheet and diverse portfolio of businesses,” it said.

Cahya Mata’s share price closed five sen or 4% higher at RM1.30, valuing the company at RM1.40 billion.

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