Lafarge Malaysia Bhd reports 2Q loss

Lafarge Malaysia Bhd reports 2Q loss
30 August 2017

Lafarge Malaysia Bhd posted a net loss of MYR44.09m (US$10.3m) in its second quarter of 2017, compared to a net profit of MYR18.36m in the corresponding period amid weaker domestic demand in its cement segment  higher competition.

Revenue dropped 19 per cent YoY to MYR531.77m from MYR658.8m, according to its Bursa Malaysia filing.

“The situation was further exacerbated by the greater operating costs from higher fuel and electricity cost. This quarter’s loss was partially mitigated by a one-off gain on disposal of land and lower one-off separation cost,” it added.

For the first six months of this year the company incurred a net loss of MYR93.02m compared with a net profit of MYR39.01m in the previous year, while revenue fell 18 per cent to MYR1.09bn from MYR1.33bn.

"This decrease in profitability was mainly attributable to the cement segment’s lower revenue contribution, higher depreciation of property, plant and equipment and higher fuel and electricity costs," it added.

Moving forward, the group said it will continue with its cost-efficiency efforts. It will also continue its drive to differentiate its products, services and route to market to enhance its added value to customers.

Published under Cement News