- Its property development business turned to loss in absence of a land sale profit last year, while its investment segment profit also shrank.
KUALA LUMPUR (May 22): Cahya Mata Sarawak Bhd’s (KL:CMSB) net profit fell 33.8% to RM25.34 million in its first quarter ended March 31, 2025 (1QFY2025) compared to RM38.25 million a year ago, dragged by unfavourable foreign exchange (forex), and lower contribution from associates and joint ventures.
In the quarter under review, the Sarawak-based conglomerate incurred an unrealised forex loss of RM5.75 million compared to an unrealised forex gain of RM16.31 million in 1QFY2024, it said in its results filing.
Contribution from associates and joint ventures fell 41.5% to RM12.45 million from RM21.27 million a year ago.
Quarterly revenue for 1QFY2025 declined 11.3% to RM246.13 million, down from RM277.37 million in the same period last year, attributed to lower revenue in the oiltools division and cement segment.
In a separate statement, Cahya Mata highlighted the lower revenue was due to the severe and prolonged rainy season in Sarawak, which has significantly disrupted the group’s operations in the first quarter.
In terms of segment performance, the forex loss contributed to its phosphate segment's widened losses, while the weather dragged its oiltools segment as rig activity slowed.
Meanwhile, its property development business turned to loss in absence of a land sale profit last year, while its investment segment profit also shrank.
Improvement was nonetheless seen in its cement and road maintenance segment earnings.
Going forward, the group expects weather conditions to improve for the remainder of the year, supporting the resumption of construction activities.
It also noted that construction prospects remain strong in Sarawak, while the recent weakening of the US dollar against the ringgit is expected to benefit its supply chain costs.
Shares of Cahya Mata settled two sen or 1.6% lower at RM1.22 on Thursday, giving it a market capitalisation of RM1.31 billion. The stock has shown strong performance recently, climbing nearly 52% from its 80 sen low in mid-April.
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