Cahya Mata Sarawak sees decline in 1H19 net profit

Malaysia's Cahya Mata Sarawak Bhd (CMS) recorded a 54.9 per cent decline in net profit to MYR41.33m (US$9.79m) for the 2Q19, compared with MYR91.63m in the year-ago period. However, revenue showed a modest increase to MYR399.17m from MYR395.28m.

In the 1H19, net profit decreased 37 per cent to MYR82.1m, while revenue rose 8.9 per cent to MYR817.35m. The company has attributed the lower earnings to the higher cost of imported clinker and coal for its cement division, which is expected to negatively impact the segment’s profit before tax for the rest of the year.

In the long-term, CMS expects growth to be driven by the ongoing Pan-Borneo Highway project and the government’s increased spending on infrastructure.