Kuala Lumpur – Chemical Company of Malaysia Berhad’s (CCM) consolidated group revenue broke through the RM2 billion mark and set a new record at RM2.2 billion in its financial year ended December 31, 2008 rising 55% from RM1.4 billion in 2007.

Gross profit also jumped 42 per cent to RM299.9 million from RM210.5 million in the corresponding period in 2007.

Meanwhile, CCM’s profit before tax saw an increase of 13.9 per cent to RM120.3 million from RM105.6 million in the previous year.

The Fertilizers Division was the Group’s top revenue driver. The Division’s revenue nearly doubled to record a 94.2 per cent increase in revenue to RM1.4 billion from RM723.8 million in the same period in 2007. Profit before tax rose significantly by 138.4 per cent to RM83.5 million from RM35.0 million the year before. The Fertilizers Division’s higher performance over the previous year was achieved on the back of rising prices and improved margins in the first three quarters of 2008, which started to soften in the last quarter.

The Group’s Chemicals Division reported an 18.7 per cent growth in revenue to RM606.5 million from RM511.1 million in 2007. However, the Division’s profit before tax at RM14.7 million was 3.1% lower than the previous year  due to year-end-stock impairment charges incurred reflecting market falls in product prices, and underperformance of its water systems business.  

The Pharmaceuticals Division’s revenue improved seven per cent to RM232.7 million from RM217.4 million in the corresponding period last year. However, its profit before tax was 33 per cent lower at RM37.2 million from RM56.3 million in 2007. The decrease was attributed to reduced margins arising from higher raw material prices coupled with lower selling prices of products to the government sector. 

In the fourth quarter ended December 31, 2008, the Group reported a 35 per cent growth in revenue to RM530.8 million from RM393.8 million in the same period last year.  Profit before taxation was however a loss of RM1.7 million due to the year-end stock impairment charges incurred by the Fertilizers and Chemicals divisions. 

CCM’s basic earnings per share for the financial year ended December 31, 2008 rose to 16.15 sen from 15.73 sen in 2007.

The CCM Board of Directors is recommending a final dividend of 1.8 sen per ordinary share less tax at 25 per cent and 4.9 sen tax exempt dividend (2007: 10.0 sen per ordinary shares less tax at 26 per cent) in respect of the current financial year ending December 31, 2008.

CCM, Malaysia's largest generic pharmaceutical manufacturer, is listed on the main board of Bursa Malaysia and is a key player in the fertilizers, chemicals and pharmaceuticals industries.

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Issued with the compliments of Chemical Company of Malaysia Berhad
Through Eric Pringle Associates Public Relations Sdn Bhd.
For further information, please contact Ida Fazila Ismail
at 03-2161 7144 or e-mail at ifazila@epapr.com.my