KUCHING: Cahya Mata Sarawak Bhd (CMS) has achieved revenue of RM423.78 million for the six months ended June 30, 2022 (1H22), a nine per cent jump from RM387.06 million recorded in the corresponding period a year earlier.
Profit before tax (PBT) amounted to RM127.02 million for 1H22, lower by nine per cent compared to RM140.03 million the year before.
Profit after tax and non-controlling interests (PATNCI) stood at RM111.59 million in 1H22, reflecting an 11 per cent decrease from RM125.19 million recorded the year prior.
The lower PATNCI was a result of one-off gains on disposal of investment and land of RM41.26 million recognised in 1H21.
A 26 per cent reduction in the share of profits in joint ventures also lent to the decrease in PBT and PATNCI.
Nevertheless, gross margin from operations improved by RM14.6 million and share of results of associates rose by RM21.46 million during the period in focus.
Therefore, without incurring extraordinary gains in the prior year, the group’s PBT and PATNCI would improve by 29 per cent and 33 per cent respectively year-on-year.
While the group continues to face industry-wide challenges such as steep increase of prices of raw materials, labour shortages and global supply chain constraints, it remained on track to execute key business strategies and initiatives during the first six months of the year.
In the Cement Division, revenue increased by 14 per cent to RM271.33 million in 1H22 from RM237.85 million the preceding year, while PBT jumped 37 per cent to RM56.96 million from RM41.52 million previously.
This performance was attributed to higher sales volume and improved cost efficiencies.
The Trading Division recorded PBT of RM1.7 million during the period, 38 per cent lower than RM2.75 million reported in 1H21.
This was due to delays in take-up of telecommunication products and the recent price hike in construction materials, thus resulting in lower customer orders.
Meanwhile, the Road Maintenance Division posted PBT of RM4.15 million, representing a seven per cent decrease from RM4.48 million in the corresponding period last year.
The Property Development Division saw PBT rise to RM11.74 million compared to RM11.26 million the year before, while revenue fell 12 per cent.
Under the Phosphate Division, the group’s integrated phosphate complex (Phase 1) project is scheduled for completion by the fourth quarter of 2022 (4Q22) and was thus not operational.
Given this, the Division reported higher loss before tax year-on-year mainly due to higher unrealised foreign exchange loss of RM16 million in the current period compared to the RM8.68 million loss recorded in 1H21 as the US dollar continued to strengthen.
The commissioning of the Phosphate plant commenced in early August and is targeted to be fully commissioned by 4Q22.
The Strategic Investments Division recorded PBT of RM0.61 million for the first six months of 2022, after posting PBT of RM6.05 million a year ago due to a one-off gain recognised for the disposal of shares in Kenanga Investment Bank Bhd amounting to RM5.39 million in 1H21.
Going forward, the group anticipates that infrastructure and rural development programmes in Sarawak remain intact amid high raw material costs, labour shortages and logistics bottlenecks.
Furthermore, despite the challenges faced across the industry, the group is of the view that business activities will pick up and contribute to the performance of the group’s businesses once these issues are resolved.