Chemical Company of Malaysia Bhd (CCMB) achieved an impressive 25 per cent increase in revenue from RM296.4 million to RM370.7 million for the financial year ended 31 December 2017 for its Chemicals and Polymers businesses, mainly due to improved revenues.
For the current quarter ended 31 December 2017, the Group recorded revenue of RM109.2 million, higher by 48 per cent compared to the corresponding quarter last year of RM73.7 million, after experiencing improved sales for the said quarter under review. Meanwhile, the Group’s profit before tax (PBT) for the financial year ended 31 December 2017 jumped by more than six folds to RM15.0 million from RM2.1 million achieved for the corresponding period of 2016.
Nik Fazila Nik Mohamed Shihabuddin, CCMB’s Group Managing Director, said that the significant rise in PBT was attributed to the higher margins in CCMB’s Chemicals and Polymers businesses.
“The PBT also included one-off expenses of RM6.8 million for works on dismantling of the Shah Alam fertlizers plant and RM7.0 million for various corporate exercises undertaken during the period under review,” she added.
The revenue for CCMB’s Chemicals Division rose 32 per cent to RM283.6 million for the financial year 2017 from RM214.7 million in 2016. The Business’ PBT surged 144 per cent to RM44.0 million from RM18.0 million in 2016.
“The growth in PBT was primarily due to higher sales and margin from higher average selling prices of our chlor alkali products, higher volume sold during the period under review and positive impact on operational efficiency initiatives.
“The Group’s Polymers Division recorded a 3.8 per cent increase in revenue to RM84.3 million from RM81.2 million the same period last year. The Business’ PBT grew 8.2 per cent to RM19.1 million as compared to RM17.7 million in the corresponding period in 2016. The rise in PBT was attributed to changes in product mix and price increases on certain products,” she said.
The Group’s revenue for the fourth quarter ended 31 December 2017 grew 24.0 per cent to RM109.2 million from RM88.1 million in the immediate preceding quarter, mainly contributed by the performance of CCMB’s core businesses, namely the Chemicals and Polymers Divisions.
Meanwhile, CCMB’s PBT in the current quarter swelled by more than seven folds to RM7.1 million from RM0.8 million in the immediate preceding quarter. This was attributed to the increase in average selling prices of chlor alkali products which led to an improvement in margins.
“The Group will now focus on solidifying its leading positions in the Chemicals and Polymers Divisions to accelerate its growth, moving forward.
The revenue for the CCMB’s discontinued Pharmaceuticals Division for the financial year ended 31 December 2017 increased 48 per cent to RM468.0 million from RM312.9 million in the same period last year due to the supply of renal and endocrine products and increased demand from the public health sector via tenders.
The Division’ PBT rose 65 per cent to RM51.8 million in the period under review from RM31.5 million in the corresponding period in 2016. The result was attributed to the increase in sales.
The de-merger of CCM Duopharma Biotech Berhad from CCMB was completed on 28 December 2017. CCMB will now focus on growing its Chemicals and Polymers businesses going forward.
“The demerger has given CCMB ample agility to pursue our planned expansion and to create a sustainable growth for the future. We will continue our de-gearing plans via divestment of identified non-core assets to improve our financial performance.
“We are also committed to leveraging on opportunities within the chemicals and polymers industries to not only strengthen our financial position but to also deliver value for our customers and shareholders, and maintain a competitive edge in the challenging business landscape,” said Nik Fazila.