Kuala Lumpur – Chemical Company of Malaysia Berhad (CCM) recorded a 26 per cent increase in group revenue of RM1.397 billion for the financial year ended December 31, 2007 up from RM1.11 billion in the previous year. The achievement exceeded CCM’s turnover KPI of RM1.305 billion for 2007.

The Group’s gross profit also jumped 15 per cent to RM210.5 million from RM183.2 million in the corresponding period last year while profit before tax was RM105.6 million,  exceeding the target KPI of RM100 million.

CCM’s achievement was realized on the back of the better than expected performance of its Fertilizers Division due to buoyant market demand and improved prices and margins. The Division’s year-on-year revenue expanded by more than 35 per cent to RM723.8 million from RM535.6 million while profit before tax soared 170 percent to RM35 million from RM12.9 million. 

Excluding exceptional items under other income, profit from business operations for the period ended December 31, 2007 was RM100.2 million compared to RM79.8 million in 2006, an increase of 26 percent.

Overall profit before taxation was RM105.6 million for the year under review compared to RM138.4 million in the previous year. Profit before taxation in 2006 included an exceptional gain on sale of investments of RM62.1 million.

The Group recorded a Return of Earnings (ROE) of 8.5 per cent (after tax and minority interest) for the period under review.  This compares with a medium term (2007 – 2010) KPI  target range of 12-15 per cent.

The Pharmaceuticals Division  revenue grew six per cent to RM217.4 million from RM204.8 million in 2006 while segment PBT was up 13 per cent to RM56.3 million from RM50.0 million in the same period last year.

The Chemicals Division’s revenue increased 23 per cent to RM511.1 million from RM415.8 million. However, margins at the Chemicals Division was affected by lower selling prices of its manufactured products which coupled with higher costs of energy and raw materials, resulted in a lower segment PBT of RM15.1 million for the financial year ended December 31, 2007 compared to RM21.5 million in the same period last year.

The Group’s basic earnings per share for the period under review was 15.73 sen compared to 26.9 sen in 2006.

CCM will embark on an aggressive growth strategy to expand its business presence and market share both domestically as well as in the region.  A strong market presence will ultimately ensure better-than-average profitability and returns to shareholders.

The Group has set KPI targets for 2008 of RM1.7 billion in total revenue and RM115 million in profit before taxation while maintaining a medium term ROE of 12-15 per cent.

In the fourth quarter ended December 31, 2007, the Group recorded a 27 per cent increase in revenue to RM393.8 million from RM311.2 million in the same period last year while gross profit increased 20 per cent to RM57.2 million from RM47.7 million. Profit from operations in the fourth quarter also improved significantly by 140 per cent to RM35.9 million from RM14.9 million in the previous year due to the increase in gross profit and an increase in other income.

The CCM Board of Directors is recommending a final gross dividend of 10.0 sen per ordinary share less tax at 26 per cent in respect of the financial year ending December 31, 2007. In 2006, the Group proposed a final dividend of 9 sen less 27 per cent tax and a special dividend of 6 sen tax exempt.

CCM is listed on the main board of Bursa Malaysia with a market capitalisation of RM1.3 billion and is a key player in the fertilizers, chemicals and pharmaceuticals industry.

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Issued with the compliments of CCM Berhad by
Eric Pringle Associates Public Relations Sdn Bhd.
For further information, please contact Ida Fazila Ismail
at tel no: 21617144 or email: ifazila@epapr.com.my.