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Central Global Registered Stellar Growth in Revenue, Buoyed by Construction Segment

The main-board listed manufacturer cum constructor has today announced its interim financial results for the second quarter (Q2) Financial Period Ended 30 June 2022 (FPE 30 June 2022).

The Group posted a Profit After Tax (PAT) of RM4.40 million for its Q2 FPE 30 June 2022 which reflects a RM4.91 million increase in comparison to the same reporting period last year.
The improved bottom line came on the back of a 117% or RM21.31 million increase in revenue to RM39.46 million as compared to the corresponding period of the previous year.

Meanwhile, Central Global also registered a growth of RM30.80 million or 55% in revenue for the six-month financial period ended 30 June 2022. During this same time, the Group also posted an increase of RM7.83 million in its PAT to RM6.30 million.

On the Construction segment front -the Group’s main earnings contributor – revenue continued to soar to RM24.25 million in Q2 FPE 30 June 2022. This translates to a RM22.21 million or 1,089% increase year-on-year which was attributable to the Group’s secured projects, the RYRT Lahad Datu Phase 1 Water Supply System and the accelerated work progress on the Montage condominium in Bayan Lepas, Penang.

While the Construction segment makes up 61% of the Group’s total revenue, the Manufacturing segment makes up the remaining 39%, contributing RM15.20 million for Q2 FPE 30 June 2022.

“This was an exceptional quarter for us. I hope that our performance this quarter, which sees our PAT reaching an all-time high, is a testament to the success of our new business strategy,” CGB’s Group Managing Director Chew Hian Tat said.

“We anticipate that both business segments will remain resilient in the upcoming quarters despite the rocky road ahead expected in the Construction industry. Nevertheless, we’re excited for what’s in store in the next quarter especially for our
Construction segment as we will begin work on our newly secured contracts namely the Quinton condominium, the Sri Bayu apartment and the Montage condominium which have a total contract value of RM85 million,” he added.

“We are also optimistic of our Manufacturing segment’s prospects and we are well positioned to benefit from the anticipated higher export sales in the next quarter as a result of the return of a full workforce to our manufacturing plant. Production is
running at nearly full capacity in order to clear the backlogged orders from our overseas customers,” he remarked.

“Our additional mixers have been installed and are currently under trial runs in August. The additional mixers will increase our output by 20% to 215 metric tonnes. We also look forward to complement our existing range of industrial tapes by
increasing the product portfolio through our consistent research and development efforts,” he explained.

Source: Business today