KUCHING: Cahya Mata Sarawak Bhd (CMS) sunk into the red with a group net loss of RM11.32 million in the second quarter ending June 30, 2025 (2Q2025) from a profit of RM33.37 million a year ago, dragged down by the sizable losses incurred by its phosphate business.
Group revenue slipped to RM246.9 million (2Q2024:RM278 million).
Losses per share was 1.05 sen against earnings per share of 3.11 sen in 2Q2024.
Subsidiary, Cahya Mata Phosphates Industries Sdn Bhd, reported worsening pre-tax loss of RM56.19 million (2Q2024: RM21.21 million), and phosphate is the only business segment that lost money in the current quarter under review.
During the first six months of 2025 (1H2025), CMS said the market saw the strengthening of the ringgit against US dollar to RM4.21 from RM4.48 on December 31, 2024.
“Cahya Mata Phosphates is a USD functional currency company and the recent weakening of the USD against RM (ringgit) resulted in an unrealised forex loss of RM34.17 million on the revaluation of shareholders loan recorded in Cahya Mata Phosphates,” said the Sarawak conglomerate in a media statement on its 2Q2025 financial performance.
In 2Q2025, CMS cement segment posted slightly lower revenue of RM146.1 million (2Q2024:RM150 million) but its road maintenance segment recorded higher revenue of RM34 million (RM27.7 million).
Also doing better were the construction materials and trading segment with improved revenue of RM16.2 million (RM12.44 million), property development segment RM17.44 million (RM9.2 million), and support services segment RM25.9 million (RM19.8 million).
The oil tools segment revenue plunged to RM35.54 million (RM76.98 million). After elimination of inter-segment sales of RM24.2 million, the total group revenue in 2Q2025 was RM246.9 million (RM278 million; elimination of inter-segment sales of RM18 million).
In 1H2025, CMS group net profit fell sharply to RM14 million (1H2024:RM71.6 million) as group revenue shrank by 11 per cent to RM493.1 million (RM555.4 million).
Group’s pre-tax profit (PBT) from operations fell to RM21 million (1H2024: RM107.6 million), and the weaker performance was attributable to a combination of softer demand for all business segments, except road maintenance and construction materials and trading segments, and adverse foreign exchange movements in phosphate segment.
In additional, profit contributions from associates dropped by 33 per cent to RM21.5 million and joint ventures slipped by five per cent to RM5.29 million, CMS said in explanatory notes to its financials.
The cement segment revenue in 1H2025 fell by three per cent to RM289.3 million (1H2024: RM299.2 million), resulting in lower PBT of RM68.72 million (RM70.7 million) due mainly to slower progress of key infrastructure projects and prolonged rainfall and flooding.
The road maintenance segment reported a 40 per cent jump in revenue to RM76.65 million (RM54.8 million), driving up its PBT by 32 per cent to RM10 million (RM7.61 million), thanks to higher on-going orders and work completion achieved by instructed works.
The construction materials and trading segment reported a 19 per cent jump in revenue to RM27.98 million (RM23.57 million) and reduced its pre-tax loss to RM11,000 (-RM660,000).
The property development segment turnover rose by 13 per cent to RM25.9 million (RM22.94 million) but incurred a pre-tax loss of RM1.23 million (+RM4.25 million).
The higher revenue was driven by increased property sales but the profit in 1H2024 was due to a deemed land sale transaction.
The phosphates segment suffered higher pre-tax loss of RM87.2 million (-RM40.45 million) mainly due to the weakening of the US dollar against ringgit which resulted in unrealised forex losses as opposed to unrealised forex gains in 1H2024.
The segment did not report any revenue as its manufacturing plant in Bintulu has yet to commence commercial operations.
The oil tools segment registered a 50 per cent drop in revenue to RM77.89 million (RM155.1 million), resulting in its PBT fell by 77 per cent to RM6.52 million (RM28.1 million).
The weak performance was primarily due to reduced rig activities across most of the markets it operated in relative to last year.
The strategic investment segment saw its PBT fell to RM1.86 million (RM8.27 million) due to reduced exposure to foreign currency denominated transactions and balances as well as lower fair value gains from investments.
CMS’ 2Q2025 financial results came in weaker than 1Q2025 when group PBT stood at RM26.87 million (2Q2025: RM5.86 million) as revenue was higher at RM278 million (RM246.9 million).
As at June 30, 2025, CMS net tangible assets (NTA) per share stood at RM3.08, alongside a health cash position of RM543.8 million.
The group’s gearing ratio remains low at 0.07 times.
On prospects for the current financial year ending December 31, 2025, CMS said based on historical data, the group anticipates that the weather conditions will improve in 2H2025, contributing to the resumption of construction activities that will give a positive impact to its earnings.
Subsidiary, Cahya Mata Cement Sdn Bhd, had commenced the construction of Mambong Clinker Line 2 upon award of the engineering, procurement, construction and commissioning (EPCC) contract to Sinoma Industry Engineering (M) Sdn Bhd last month.
“The recent weakening of the US dollar to the ringgit is expected to benefit our supply chain costs. Meanwhile, the commissioning of Cahya Mata Phosphates Industries’ plant remains on track, with commissioning to resume in 4Q2025,” said CMS.
CMS expects the new RM550-million project it recently secured for the proposed development of Borneo Convention Centre Kuching II to contribute positively to the group earnings going forward.
