Chemical Company of Malaysia gained a 35% increase in revenue to RM413.7 million for the first six months ended 30 June 2017 while profit before tax (PBT) grew to RM31.8 million from RM19.7 million in the corresponding period last year.
Attributing to the increase, the pharmaceuticals business was the main contributor with 52% following the increased in demand from public health sector and supply of renal and endocrine products. Meanwhile the chemicals business achieved a revenue to RM129.7 million from RM109.2 million while its profit jumped 69 percent to RM16.2 million as compared to the corresponding period last year. The growth in profit was attributed to higher sales and margin as a result of higher average selling prices of its chlor alkali products.
Meanwhile, CCM recorded a 6.0 percent increase in revenue to RM201.5 million for the current quarter ended 30 June 2017 from RM154.2 million in the corresponding quarter last year while profit before tax grew to RM15.7 million from RM7.5 million.
Moving forward the company is cautiously optimistic about the prospects of its pharmaceuticals business as the pharmaceutical industry is expected to remain stable for the rest of the year. However, the foreign exchange volatility and uncertainties in the economy may affect the Business’ manufacturing margin. In order to address the continuous industry challenges, the Business is embarking on the rationalisation and upgrading of its manufacturing assets with enhanced Current Good Manufacturing Practice (“cGMP”), which will enable it to tap into new markets and simultaneously meeting the increasing cGMP standards of the international markets.
Although the markets remain competitive, the Chemicals Business is expected to perform positively implementing continuous improvement programmes to extract operational savings and striving to increase its trading margin while expanding its customer base within the region.
The Group is also undertaking various initiatives to consolidate its position in making steady progress in each of its core businesses. Its exit from the fertilisers business in 2016 has enabled the group to capitalise on its strengths and focus on areas of greater potential across all three businesses.