PETALING JAYA: Tasek Corp Bhd posted a net profit of RM4.19 million for the first quarter ended March 31, 2020 compared with a net loss of RM10.42 million a year ago mainly contributed by the cement segment and from a reduction in sales rebates and lower production cost.
However, revenue fell 4.2% to RM131.49 million from RM137.26 million in the previous year’s corresponding quarter as sales volumes for both cement and ready-mixed concrete segments were affected by the nationwide movement control order (MCO). This was compounded by lower share of profit from the associate company.
The cement segment achieved an operating profit of RM3.1 million compared with an operating loss of RM13.0 million for the corresponding quarter of previous year mainly due to lower sales rebates in the domestic market and lower production costs. However, sales volume fell due to the cessation of business during the MCO period.
The ready-mixed concrete segment achieved lower net revenue of RM45.9 million and operating profit of RM752,000 for the current quarter compared with previous year’s corresponding quarter of RM55.7 million and RM1.5 million respectively on account of lower sales volume arising from the MCO and higher raw material costs.
The group’s interest income of RM529,000 for the current quarter was higher compared with RM496,000 of the corresponding quarter of previous year mainly due to higher short term deposits.
The lower share of profit from the associated company of RM214,000 for the current quarter compared with RM316,000 of the corresponding quarter of previous year was mainly due to lower sales volume arising from the nationwide MCO and higher cost of sales.
Tasek said the outlook for the second quarter is expected to be even more challenging. Like all businesses, the group is also affected by the MCO which caused the cessation of the operations of the group’s cement plant and ready-mix concrete operations since March 18, 2020.
“Although approval has been granted by International Trade & Industry Ministry for the cement plant to resume operations, the MCO will have an adverse impact on the financial performance of the group,“ Tasek said.
