KUALA LUMPUR (Nov 24): Cahya Mata Sarawak Bhd (KL:CMSB) reported a significant improvement in gross margins and a smaller unrealised foreign exchange loss from the revaluation of shareholders’ loans in its phosphates business, helping the group return to profitability in the third quarter.

CMSB posted a net profit of RM32.12 million for the three months ended Sept 30, 2025 (3QFY2025), reversing a net loss of RM9.22 million a year earlier, as revenue rose 1.8% to RM305.37 million from RM299.91 million.

No dividend was declared for the quarter.

Higher contributions from the group's cement, roads maintenance and property development business units, together with stronger joint venture results, were key drivers of the improved performance, said CMSB in a bourse filing on Monday.

In the cement division, profit before tax (PBT) increased 24% to RM46.8 million, supported by lower imported clinker prices and efficiency gains. The roads maintenance segment saw PBT more than double to RM7.1 million on the back of higher orders and work completions.

The property development unit delivered a sharp turnaround, with sales jumping 364% and PBT surging 409%, driven by revenue and margin recognition from construction contracts for the Borneo Convention Centre Kuching II (BCCK 2) project and property sales.

In contrast, the oiltools segment reported weaker results, with revenue and PBT down RM31.2 million and RM7.2 million respectively, reflecting reduced rig activity across most markets.

For the nine months ended Sept 30, 2025, CMSB said its net profit fell 26.1% to RM46.13 million from RM62.39 million while total revenue dipped 6.6% to RM798.42 million from RM855.27 million.

As at end-September, the group’s net assets per share stood at RM3.16, while its gearing ratio was 0.07 times.

Looking ahead, CMSB said the recent strengthening of the ringgit is expected to ease supply chain costs.

Meanwhile, work on the RM550 million BCCK 2 project has commenced and is expected to contribute positively to earnings in the coming quarters.

Elsewhere, the reconnection of electricity supply to Cahya Mata Phosphates Industries’ plant has enabled the resumption of testing and commissioning activities in 4QFY2025, while construction of Mambong Clinker Line 2 for its cement division is progressing satisfactorily.

Shares in CMSB closed down two sen or 1.5% at RM1.33 on Monday, valuing the group at RM1.43 billion. Year to date, the stock has gained 10.8%.