Cahya Mata’s revenue increased in FY22 due to higher contributions from its cement and road maintenance Divisions.
KUCHING (Feb 28): Cahya Mata Sarawak Berhad (Cahya Mata) reported total revenue of RM1.01 billion for financial year 2022 (FY22), representing an increase by 24 per cent in comparison FY21’s revenue of RM814.55 million.
Cahya Mata’s revenue increased in FY22 due to higher contributions from its cement and road maintenance Divisions.
The group’s profit before tax (PBT) improved by 76 per cent to RM412.30 million as compared to RM234.61 million in FY21; operational profits increased on better margins.
Profit before tax (PBT) improvements were also due to the negative goodwill of RM71.07 million arising from the acquisition of Oiltools group and the reversal of impairment of RM37.69 million on investment and the gain on disposal of associates of RM89.02 million.
The group’s profit after tax and non-controlling interests (PATNCI) for FY22 increased by RM93.84 million, representing an increase by 46 per cent to RM298.06 million in comparison to RM204.22 million reported in FY2021.
“Despite the challenges of increased logistical and raw materials prices, Cahya Mata Group improved its operational performance for FY22,” it said in a statement announcing its results. “This was through improved operations management and effective marketing.
“The board of directors continue to hold a longer-term view that infrastructure and rural development activities will remain active. Cahya Mata’s group of companies should benefit from the strong economy in Sarawak.”
MIDF Amanah Investment Bank Bhd (MIDF Research) highlighted that foreign exchange lossed weighed on Cahya Mata’s upcoming phosphate business has yet to generate any revenue while it accumulated RM57.9 million in operating losses, widening from RM18.1 million from FY21.
The commissioning of all its four furnaces were completed in December 2022 as scheduled and the group is currently implementing the commercialisation of the business. The phosphate plant is projected to be cash neutral in 2023 and optimistic expectations would see profits trickling in by 2024.
MIDF Research remained positive on Cahya Mata’s prospects moving into FY24, in line with projects that are expected to be rolled out in the state as the newly formed federal government commits to develop East Malaysia, “evident from the recently tabled Budget 2023, where RM5.6 billion was specifically allocated for Sarawak’s development expenditure, on top of RM2.50 billion that was allocated for Sabah and Sarawak for public amenities.”
“There is also the commitment of expediting the Pan Borneo Highway and the Sarawak-Sabah Link Road, which the federal government estimate will cost a total of about RM20 billion.
“Alongside the Sarawak state government’s previous projection of a RM100 billion capital injection by 2030, all these should translate into quality job flows over the next few years.
“We are also positive on its upcoming phosphate business in the longer-term, which is set to take on Kazakhstan and Vietnam, the two powerhouses that have dominated the yellow phosphorus industry for years.”