Malaysia’s CMSB posts a rise in 4Q earnings for its cement division

Malaysia’s leading infrastructure facilitator Cahya Mata Sarawak Berhad (CMSB) posted a pre-tax profit (PBT) of RM295.27 million for the financial year ended 31 December 2013, a 30% y/y increase from RM226.91 million in FY12. PBT for 4Q13 (ended 31 December 2013) rose by 75% y/y to RM109.12 million, from RM62.37 million in 4Q12 and RM62.53 million in 3Q13.

The Group’s profit after tax and non-controlling interests (PATNCI) in FY13 stood at RM175.45 million, a 29% y/y increase compared to RM135.74 million in FY12. Earnings per share stood at 52.67 sen against 41.39 sen a year earlier.

Cement and construction

The increase in PBT for FY13 was attributable to higher earnings from its Cement Division, which recorded a 46% y/y rise to RM96.66 million, against RM66.37 million in FY12. This was mainly due to the turnaround of CMS Clinker in March 2013, following the successful re-commissioning of its upgraded clinker plant. The Construction Materials & Trading Division reported a higher PBT of RM55.08 million for FY13, which exceeded FY12’s PBT of RM40.66 million by 35%. Higher profit in this division was achieved as a result of increased government infrastructure spending and the securing of additional private sector projects.

Maintenance and property development

Due to a rise in works undertaken and longer road lengths maintained, the Construction & Road Maintenance Division reported a PBT of RM95.24 million in FY13, an increase of 18% y/y compared to RM80.69 million in FY12. The Property Development Division also reported higher revenue and PBT due to strategic land sale undertaken to help catalyse development in its Bandar Samariang township. The Samalaju Division recorded a 5% y/y rise in PBT to RM26.72 million in FY13, against RM25.33 million in FY12.

Record revenue

Dato Richard Curtis, Group Managing Director of CMSB, commented on the results: “CMSB’s success in achieving four years of record revenue and profits growth in a challenging business environment is a credit to both our business model, our Board and staff for their vision and hard work. For this financial year, significant achievements have been recorded amongst all the core divisions namely the Cement, Construction Materials & Trading, Construction & Road Maintenance, Property Development and Samalaju Development Divisions, which saw robust rises y/y in PBT by 46%, 35%, 18%, 28% and 5%, respectively.”

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldcement.com/asia-pacific-rim/26022014/malaysias_cmsb_posts_a_rise_in_4q_earnings_for_its_cement_division_812/