KUALA LUMPUR (Nov 24): Chemical Company of Malaysia Bhd (CCM) returned to the black in the third quarter ended Sept 30, 2017 (3QFY17) with a net profit of RM8.2 million versus a net loss of RM20.65 million in 3QFY16, mainly due to the absence of its disposed loss-making fertilizers division.
Quarterly revenue stood at RM88.12 million, up 17% compared with RM75.51 million in the corresponding quarter last year, mainly due to improved revenue from its chemical business.
In a filing with Bursa Malaysia today, CCM said its chemical business recorded revenue of RM68.2 million during the quarter under review,
which was 19% higher than the RM57.2 million in the same quarter last year, contributed by higher average selling prices of its chlor-alkali products, and higher volume sold during the quarter.
Meanwhile, its polymers business recorded revenue of RM20.5 million, up 6% compared with last year's RM19.2 million.
On Aug 2, CCM announced a proposed distribution of the entire shareholding in CCM Duopharma Biotech Bhd to the shareholders' company, which has been approved on Oct 3.
Part of the revenue from CCM Duopharma is counted in CCM's financial results for the quarter as discontinued operations, where the
pharmaceuticals business contributed RM115.4 million in revenue, which is 44% higher than the RM80.3 million it recorded in the same quarter a year ago.
For the cumulative first nine months of 2017 (9MFY17), the group's net profit jumped more than seven-fold to RM22.84 million, from RM3.06 million for the same period last year.
Revenue for the period came in at RM261.48 million, up 17.4% from RM222.64 million in 9MFY16.
On its prospects, CCM said it will continue to evaluate opportunities within the respective markets to ensure growth for its chemicals and polymer business.
"The group will also be undertaking de-gearing plans via divestment of identified non-core assets to continuously strengthen its financial position. This will give the group ample agility to pursue its planned expansion and growth strategy moving forward," it added.