KUALA LUMPUR (Nov 13): Hume Cement Industries Bhd (KL:HUMEIND), 72%-owned by the Hong Leong Group, reported a 29.1% increase in net profit for its first financial quarter, driven by lower input and production costs alongside stronger cement sales volume.
Net profit for the three months ended Sept 30, 2025 (1QFY2026) came in at RM61.21 million, up from RM47.42 million a year earlier, the company's bourse filing on Thursday showed. Earnings per share climbed to 8.48 sen from 6.55 sen.
Quarterly revenue rose 2.2% year-on-year to RM290.07 million from RM283.71 million, as demand in the construction sector supported higher sales volume.
The board declared an interim dividend of six sen per share, up from four sen in the same quarter last year. The dividend is payable on Dec 17, with an ex-date of Dec 1.
Hume Cement's gross profit margin strengthened to 43.2% from 37.9% in 1QFY2026, while operating profit margin widened to 27.5% from 22.9%.
Operating expenses increased 5.7% year-on-year to RM46.42 million and rose 3.6% from the previous quarter, in line with business volume.
Finance costs dropped 59.6% to RM1.43 million from RM3.55 million, while interest income surged more than threefold to RM1.97 million.
Hume Cement, whose operations track the construction industry, noted that it is monitoring disruptions to cement logistics due to regulatory changes under the national transport policy.
Nevertheless, the board expects the group’s performance for FY2026 to be satisfactory.
Shares of Hume Cement closed up two sen or 0.56% at RM3.59 on Thursday, valuing the company at RM2.6 billion. The stock has gained over 14% year to date.