Cahya Mata Sarawak Berhad records stellar results

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9-month pre-tax profit up 17% to RM164.53 million

Kuching (Sarawak), Thursday, 29 November 2012. Cahya Mata Sarawak Berhad (CMSB – 2852), the State’s leading infrastructure facilitator, continues to deliver strong performance for the first nine months of 2012 on the back of improving operational profitability. CMSB’s pre-tax profit (PBT) for the nine months ended 30 September 2012 rose to RM164.53 million. This represents a 17% increase from the corresponding period of last year, or equivalent to an Earnings Per Share (EPS) of RM0.31. Revenue growth remained robust at RM810.83 million for the nine-month period, 12% higher compared to the same period last year.

Despite challenging circumstances, 3Q12 revenue rose 20%, to RM288.28 million from RM240.76 million from the same quarter of last year. The Group’s PBT came in at RM44.52 million, a decrease of 16% compared to the same quarter last year. The lower profits were due to the Manufacturing Division’s clinker plant shutdown for a capacity upgrade being further extended due in part to a fire in the plant. This, coupled with a surge in demand that had to be met with imported cement, led to lowered profits.

Commenting on the Group’s performance, Dato’ Richard Curtis, the Group Managing Director of CMSB said, “CMSB’s success in recording sustainable growth in a challenging business environment is attributable to its solid business model, management focus and prudence.”

“All Divisions continued to post healthy earnings apart from the dip in profitability from the Manufacturing Division due largely to the longer than anticipated shutdown of the clinker plant from an original target of 45 days to more than 8 months. The Division nevertheless registered higher sales volume, steady cement selling prices and higher concrete ready-mix sales volumes,” added Dato’ Curtis.

“CMSB is confident of achieving good results for the financial year on the back of solid and sustainable earnings, low gearing, healthy balance sheet and an experienced and professional management team with the right strategy, passion and integrity”.

CMSB is on track to be the best proxy investment for Sarawak’s accelerating economic potential, driven by the State’s plan to develop long term, hydro energy intensive industries under the Sarawak Corridor for Renewable Energy (SCORE) and by the infrastructure required across the State.