KUCHING: Cahya Mata Sarawak Bhd (CMS) has delivered stronger earnings, with group net profit jumping to approximately RM128.2 million in the financial year ended December 31, 2024 (FY2024), from RM114.4 million in FY2023, despite a marginal decline in group revenue to RM1.196 billion from RM1.2 billion.
The group’s cement, property development, and road maintenance businesses contributed to the increased profits.
Earnings per share grew to 11.93 sen from 10.65 sen year-on-year. CMS has declared a dividend of 3 sen per share for FY2024 (FY2023: 2 sen).
CMS posted impressive earnings in the fourth quarter of 2024 (4Q2024), as net profit surged to approximately RM65.8 million (4Q2023: RM35.6 million) on expanded group revenue of RM341 million (RM332.8 million).
Compared to the immediate preceding quarter (3Q2024), CMS returned to profitability with a group pre-tax profit (PBT) of RM105.93 million (3Q2024: -RM23.38 million), in line with significant revenue growth to RM340.99 million (RM299.91 million). The share of results from associates surged by 59 per cent to RM22.07 million (RM13.84 million), while contributions from joint ventures rose by 175 per cent to RM11.6 million (RM4.22 million).
The company attributed the reversal from a loss in 4Q2024 to the strengthening of the US dollar against the ringgit, primarily impacting the group’s phosphates division.
Year-on-year, CMS reported that the group’s PBT climbed by 48 per cent to RM190.1 million (FY2023: RM128.2 million), despite slightly lower group revenue.
“The higher PBT was driven by the cement division, which benefited from lower costs, followed by the property development and road maintenance divisions, which saw improvements in gross profit margins and lower operating costs in the phosphates division.
“Similarly, profit after tax surged by 53 per cent, reaching RM124.9 million, up from RM81.64 million in FY2023,” the Sarawak conglomerate stated in a media release.
For the financial year under review, the cement division reported a higher PBT of RM149.44 million (FY2023: RM146.04 million), despite a five per cent drop in sales to RM646.98 million (RM681.69 million).
“The lower revenue was consistent with the drop in sales volume, mainly attributed to slower construction activities due to the prolonged rainy season, especially in the first half of the year,” said CMS.
The road maintenance division reported strong bottom-line growth, with its PBT rising by 156 per cent to RM34.94 million (RM13.65 million), as revenue expanded by 20 per cent to RM142.52 million (RM119.06 million). CMS attributed the division’s strong performance to higher revenue from road maintenance and instructed works, coupled with an increase in gross profit margin in FY2024.
The property development division also performed better, recording a PBT of RM21.58 million on revenue of RM73.14 million.
CMS said its phosphates division reduced its pre-tax loss to RM96.8 million (-RM156.7 million), thanks to lower operating costs incurred in FY2024.
The oil tools division recorded a three per cent increase in PBT to RM30.36 million (RM29.38 million), despite a one per cent decline in revenue to RM277.36 million (RM281.27 million).
“The increase in profitability was driven by strong performance in Indonesia and effective cost controls across all markets.”
On the other hand, the strategic investments division reported a lower PBT of RM14.54 million (RM17.78 million), primarily due to a higher gain recognised from unrealised foreign exchange in FY2023.
“The group’s performance for FY2024 has been in line with our expectations, except for the phosphates division, where the commissioning of the plant has been deferred to 4Q2025.
“Despite revenue growth remaining flat compared to last year (2023), the group improved its operational performance through enhanced operations management and efficiency.
“The group expects improved performance across all business segments, supported by projected economic growth and the benefits of infrastructure projects, coupled with a stable business environment in 2025,” CMS stated.
CMS shares opened 8 sen higher at RM1.08 and rose to RM1.16 in active trading yesterday morning, up from the closing price of RM1 on Tuesday. Over a 52-week period, the stock traded between a low of 91 sen and a high of RM1.50.
