KUALA LUMPUR: Cahya Mata Sarawak Bhd (CMSB) posted a net profit of RM203.41 million for the financial year ended 31 December 2021 (FY21), an increase of four per cent compared to RM194.81 million registered in FY20.
The results recorded in FY21 were on the back of an improved revenue of seven per cent to RM813.80 million compared with RM762.79 million reported in FY20.
The improved performance was attributable to gains on the sale of shares in an associate amounting to RM28.52 million, gain on disposal of property of RM16.99 million, coupled with improvements in associates' and joint ventures' performances by RM142.90 million.
CMSB is implementing growth strategies across all business divisions as the economy rebounds following its gradual reopening despite challenges from global supply-chain constraints.
The cement division's improved performance was largely attributable to the lifting of the Movement Control Order (MCO) and the opening of the economy in FY21.
As a result, the 22 per cent increase in the clinker plant's production days in FY21 enabled the division to record a revenue of RM483.24 million and profit before tax (PBT) of RM61.63 million.
Further, the division faced a margin pressures throughout 2021 due to supply chain constraints, including raw materials and logistics price increases.
The trading division reported PBT of RM6.11 million, an increase of 60 per cent in comparison to FY20's PBT of RM3.83 million.
The higher PBT was due to higher sales in all its product segments.
The road maintenance division reported lower revenue of RM119.72 million as compared to RM129.89 million in FY20 due to lower work done.
PBT contracted by 51 per cent to RM9.44 million from RM19.14 million due to a drop in gross margin and higher administrative
expenses.
Revenue for the property development division increased by 61 per cent to RM114.26 million led by higher sales in properties, together with improved revenue from lodges and hotel businesses.
As a result, the PBT attributable to this division in FY21 increased to RM32.08 million as compared to a loss before tax (LBT) of RM5.33 million the year before.
The Malaysian Phosphate Additives Sarawak (MPAS) project has faced delays in commissioning due to the pandemic the availability of foreign workforce and supply chain disruption has not been progressing as scheduled.
The company is taking proactive measures to commission the plant and continues to evaluate all options on the future direction of the MPAS project.
Strategic investments share of profits from its associates in FY21 was RM158.52 million as compared to RM48.28 million reported in FY20.
This was mainly due to better performances from an associate by RM111.46 million as it had incurred a loss amounting to RM23.73 million in FY20.
In FY21, the share of results of joint ventures were RM33.38 million, contributed mainly by SEDC Resources Sdn Bhd (SRSB) Group.
SRSB's improved revenue and gross profit in FY21 was due to higher sales and a reversal of an impairment of RM6.80 million.
CMSB said while business is expected to improve further in the coming months, the company will continue to seek opportunities for sustainable long-term growth while ensuring that robust governance practices remain a priority with key initiatives in governance, accountability and risk management to be rolled out.