KUALA LUMPUR (Feb 26): Cahya Mata Sarawak Bhd’s (CMS) fourth quarter net profit jumped 71.1% to RM36.25 million from RM21.18 million a year prior, as the group’s cement segment returned to profitability.

Revenue for the quarter ended Dec 31, 2023 rose 7.86% year-on-year to RM332.65 million from RM308.4 million, according to the group’s bourse filing on Monday.

CMS has proposed a first and final dividend of two sen per share.

The group’s cement segment posted an operating profit of RM55.54 million versus an operating loss of RM3.47 million previously, as revenue increased 14.59% to RM187.78 million from RM163.87 million.

For the full year, CMS’ net profit more than halved to RM115.13 million from RM287.13 million, mainly as the group recognised a one-off gain of RM197.78 million in FY2022.

Full-year topline rose 18.82% to RM1.2 billion from RM1.01 billion in FY2022, on the back of higher contributions from its cement and oiltools divisions.

Looking to FY2024, CMS said key challenges ahead comprise the ringgit versus US dollar exchange rate as well as the outcome of its ongoing arbitration concerning Cahya Mata Phosphates.

“Aside from these challenges and barring any other unforeseen circumstances, the group is cautiously optimistic of the prospects for 2024,” the group said.

“We will continue to remain resilient and focus on realising our full growth potential, leveraging on our healthy balance sheet and diverse portfolio of businesses.

"As we progressively improve our strategy, aligning our business to growth and value opportunities, we will continue to pursue cost optimisation activities within the group to drive operational efficiency and optimise profit margin," it added.

Shares of CMS ended two sen or 2.01% lower at 97.5 sen, giving the group a market capitalisation of RM1.04 billion.