Press Metal Aluminium’s Q4 2018 revenue up 6% due to completion of PMAR acquisition

Press Metal Aluminium Holdings Berhad reported net profit of RM156.41 million in Q4 2018, up 4% from RM150.19 million in Q4 2017.For the full year of 2018, net profit rose 6.2% to RM629.98 million compared with RM593.38 million in the previous year.

Quarterly revenue increased from RM2.13 billion in Q4 2017 to RM2.25 billion in Q4 2018, representing an increase of RM120.55 million or 5.67%. This was mainly due to the completion of Leader Universal Aluminium Sdn. Bhd. (which has subsequently changed its name to Press Metal Aluminium Rods Sdn. Bhd. or “PMAR”) acquisition on 30 March 2018. PMAR’s revenue has since been consolidated into the Group revenue thereafter, it said.

For the full year of 2018, revenue increased by RM982.39 million or 12% to RM9.16 billion from RM8.18 billion in 2017. This was mainly due to higher metal price and contribution from PMAR’s revenue.

“Market is expecting aluminium demand to outstrip supply. Consequently, aluminium prices should move positively. However, for the near term, the industry still faces uncertainty of the Brazil alumina refinery in resuming its full production capacity. As such, aluminium costs may remain high in the near term,” according to company press release.

“The Group will continue to focus on value-added contribution, which is expected to increase our margins, and to look out for strategic expansion opportunities.”