KUCHING: Cahya Mata Sarawak Bhd (CMS) registered a set of strong financial performance for the third quarter of 2014 (3Q14) as net profit jumped 77 per cent year-on-year (y-o-y) to RM72.38 million from RM40.99 million in 3Q13.
The group in a statement to Bursa Malaysia yesterday added its nine months ended September 2014 (9M14) earnings also increased 62 per cent y-o-y to RM177.39 million from RM109.73 million in 9M13.
At the same time, CMS noted its revenue for 3Q14 improved 23 per cent y-o-y to RM413.07 million while turnover for 9M14 grew 19 per cent y-o-y to RM1.17 billion.
Simultaneously, the group recorded a pre-tax profit (PBT) of RM269.02 million, a 45 per cent increase from the corresponding period of last year’s PBT of RM186.15 million.
PBT reported for 3Q14 has also remained strong at RM104.18 million, a 67 per cent increase from preceding year’s corresponding quarter’s (3Q13) PBT of RM62.53 million and a six per cent increase as compared to PBT reported in the second quarter ended 30 June 2014 (2Q14) at RM98.65 million.
CMS explained that the main contributors towards the solid PBT earnings for 9M14 were the cement, construction and road maintenance and construction materials and trading divisions.
CMS observed that its cement division recorded a PBT of RM92.42 million in 9M14, a 23 per cent increase in comparison to 9M13 PBT of RM74.87 million.
The company noted that the construction materials and trading division reported a higher PBT of RM50.6 million for 9M14, exceeding 9M13 PBT of RM38.11 million by 33 per cent.
Additionally, its construction and road maintenance as well as the property development divisions also reported higher revenues and PBT compared to the corresponding nine-month period of last year.
Commenting on the financial results, CMS group managing director Datuk Richard Curtis said, “CMS’s success in recording strong performances in a challenging business environment is attributable to its prudent business model, professional management, and its focus on delivering long-term sustainable growth.
“Significant achievements have been recorded namely by the cement, construction materials and trading, construction and road maintenance and property development divisions, which saw robust rises year-on-year in PBT.
“Our third and fourth quarters are typically the strongest and based on the results for the first nine months of 2014, we can expect a strong financial performance for the full year of 2014 for CMS.”
Meanwhile, Curtis said joint ventures as well as other investments being evaluated are poised to significantly drive up shareholder value.
These incluse CMS’s 20 per cent stake in the joint venture ferrosilicon and manganese alloys smelter project with Australian listed OM Holdings Ltd and 40 per cent stake in an integrated phosphate products complex with Malaysian Phosphate Additives Sdn Bhd and Arif Enigma Sdn Bhd.
“Our strong corporate governance measures, healthy balance sheet and professional management team allow us to maximise our participation in the Sarawak growth story and position ourselves to ensure long-term sustainable growth,” Curtis said.
Furthermore, CMS announced that the group has adjusted its dividend policy by increasing its net payout ratio from 30 per cent to 40 per cent of its annual consolidated net profit to shareholders.
The scenario is subject to a minimum of 2 sen per share and other considerations such as the level of available cash and cash equivalents; return on equity and retained earnings; and projected levels of capital expenditure and other investment plans.