Hume Cement Industries Bhd has posted a net profit of RM48.33 million for the first quarter ended Sept 30, 2023 (1QFY2024) on a revenue of RM306.66 million.

KUALA LUMPUR (Nov 16): Hume Cement Industries Bhd has posted a net profit of RM48.33 million for the first quarter ended Sept 30, 2023 (1QFY2024), its highest quarterly earnings since 3QFY2003, thanks to the revision in cement selling price to cushion the increase in energy costs, coupled with higher sales volume amid recovery of construction activities.

The group had reported a net loss of RM12.04 million for 1QFY2023.

Revenue grew 48.3% to RM306.66 million, from RM206.79 million in 1QFY2023, according to Hume Cement’s stock exchange filing on Thursday.

The group has declared an interim dividend of two sen, with Dec 4 as the ex-date. This is its first dividend payout since FY2017.

Going forward, Hume Cement, which is 68.5%-controlled by billionaire Tan Sri Quek Leng Chan of the Hong Leong Group, said the construction sector is expected to continue its growth, and demand for cement will benefit from the increased development expenditures in Budget 2024.

“However, the board remains cautious, as the uncertainties arising from geopolitical pressures continue to challenge the cement industry’s input cost.

“The group is increasing its focus to develop sustainable construction materials in this growing economy, while continuing its efforts to enhance operational excellence,” it added.

Shares of Hume Cement closed seven sen or 3.8% higher at RM1.90 on Thursday, giving the group a market capitalisation of RM971.44 million. The counter has more than doubled in value year-to-date.