KUALA LUMPUR (Nov 26): Cahya Mata Sarawak Bhd’s (CMS) (KL:CMSB) posted a net loss of RM9.22 million for the third quarter ended Sept 30, 2024 (3QFY2024), compared with a net profit of RM9.99 million a year earlier, mainly due to a foreign exchange loss.

In a bourse filing on Tuesday, the group said the weakening of the US dollar against the ringgit during the period impacted its phosphates division.

In a separate statement, the group explained that its subsidiary, Cahya Mata Phosphates Sdn Bhd, reported an unrealised forex loss because its operations are conducted in US dollar but hold ringgit-denominated shareholder loans.

Revenue for the quarter eased 0.7% to RM299.91 million from RM301.90 million in 3QFY2023, driven by higher sales from the cement division, road maintenance and strategic investments.

CMS’ property development segment logged a 50.7% fall in revenue to RM7.95 million versus RM16.13 million a year earlier, primarily driven by slower sale of properties.

Meanwhile, its cement division posted a higher profit before tax of RM108.52 million, up 20% from RM90.50 million despite a 4% decline in revenue to RM471.94 million from RM493.91 million.

This, the group said, was due to lower sales caused by slow construction activity during the prolonged rainy season in the first half of the year, whereas the improved profit was driven by better gross profit margins from lower imported clinker costs and increased efficiency.

For the first nine months of the year, CMS’ net profit was down 20.9% to RM69.39 million from RM78.88 million in the same period last year.

However, this was partially offset by improvement in the gross profit margin from its cement and oil tools division.

Moving forward, CMS said its cement demand is expected to gain momentum with potential growth from major infrastructure projects announced by the Sarawak government.

“However, wider economic volatility may persist in the light of inflationary pressures and supply chain disruptions due to global geopolitical uncertainties,” it added.

CMS’ share price closed down 6 sen or 4.80% to RM1.19 on Tuesday, valuing the group at RM1.28 billion.