KUALA LUMPUR: Cahya Mata Sarawak Bhd's net profit surged 46 per cent to RM298.06 million in its financial year ended December 31, 2022 (FY22) from RM204.22 million the previous year.
The solid increase is attributed to negative goodwill of RM71.07 million arising from the acquisition of Oiltools group, and the reversal of impairment of RM37.69 million on investment and loan to an associate and gain on disposal of associates (OM Materials Sarawak & Samalaju) of RM89.02 million.
Revenue for the year jumped 24 per cent to RM1.01 billion from RM814.55 million in FY21 due to higher contributions from cement, road maintenance and new contribution from oiltools division.
The company's cement division reported a higher revenue of RM601.89 million mainly attributable to an increase in sales.
CMS said its road maintenance reported a profit of 17.11 million.
For the fourth quarter (Q4), the company's net profit rose 27.7 per cent to RM32.11 million from RM25.15 million in Q4 2021.
Revenue for the quarter increased 27 per cent to RM306.8 million versus RM241.62 million in Q4 2021.
The company noted it managed to improve its operational performance for FY22 despite the challenges of increased logistical and raw material prices.
"This was through improved operations management and effective marketing. The board continues to hold a longer-term view that infrastructure and rural development activities remain active.
"Our group of companies should benefit from the strong economy in Sarawak," it said in a statement.
CMS proposed a first and final tax-exempt dividend of three sen per share.
The dividend entitlement and payment date for the final dividend will be announced at a later date.