Press Metal Aluminium Holdings Bhd's quarterly revenue grew 9.80% year-on-year (YoY) while profit after tax expanded 24.89% YoY for the third quarter of 2024, as the group seeks business growth through refinery operation expansion, as well as the securing of alumina assets via vertical integration upstream, according to a press statement distributed by the group on Nov 29.

In a Bursa filing, the group reported a revenue of over RM3.78 billion1 for the third quarter ended 30 September 2024, which represented a growth of 9.80% YoY from over RM3.44 billion2 recorded in the corresponding quarter in 2023, primarily driven by higher aluminium prices. Meanwhile, profit after tax for the quarter under review amounted to more than RM475.7 million3 from over RM380.9 million4 in 2023, growing 24.89% YoY. Additionally, better performance by associate companies led to a 31.42% increase YoY in profit after tax and minority interests (PATAMI)5 to nearly RM402.3 million6, from over RM306.1 million7 in 2023.

Press Metal is the largest integrated aluminium producer in Southeast Asia with a smelting capacity of 1,080,000 tonnes and an extrusion capacity of 230,000 tonnes per annum. The expansion of Press Metal's operations, especially through alumina refineries such as PT Bintan Alumina Indonesia and PT Kalimantan Alumina Nusantara both in Indonesia, will serve as a critical growth driver for the group in the next few years.

Meanwhile, securing alumina assets is also crucial to ensure the long-term standing of the group as a aluminium smelter. Alumina is a key raw material for aluminium smelting and with the growing demand for aluminium from energy-related industries, the alumina industry holds significant potential. Vertical integration into upstream assets will strengthen the group's position and outlook by fostering synergy and improving profit margins.

For the year-to-date (YTD, up to September) period, revenue grew 10.51% YoY to over RM11.3 billion8, from nearly RM10.3 billion9 recorded in the previous year. YTD profit after tax also increased 44.93% YoY to nearly RM1.62 billion10, from nearly RM1.12 billion11 last year while PATAMI soared 47.24% YoY to RM1.32 billion12 from nearly RM893.9 million13.

The third quarter earnings per share (EPS) amounted to 4.88 sen per share, compared to 3.72 sen per share in the corresponding quarter last year.

Notably, the third quarter of 2024 recorded a loss of over RM105.6 million14 in foreign currency translation differences for foreign operations, and cash flow hedge totalled at over RM1.69 billion15, bringing the total comprehensive income for the period to over RM2.06 billion16, a massive 707% growth YoY, from over RM255.6 million17 recorded in 2023.

Along with the third quarter results, Press Metal declared a third interim dividend of 1.75 sen per share, payable on 31 December 2024.

Group Chief Executive Officer Tan Sri Paul Koon commented, "The group's financial performance for the quarter was impacted by the sharp USD depreciation over a short period, resulting in foreign exchange losses on trade receivables and cash assets. However, excluding this impact, our underlying performance—bolstered by forward-selling strategies and increased volumes of value-added products—would have demonstrated even stronger results."

Recent global tariff strife driven by trade tension is creating opportunity that Press Metal could leverage on. The China+1 strategy18 is driving the development of a new supply chain ecosystem in Southeast Asia, opening up alternative material supply sources. Press Metal is proactively positioning itself to capitalise on these emerging opportunities for sustained growth.

Also, the group's efforts to enhance sustainability has led to the upgrade of its ESG19 rating from 'A' to 'AA'. This recognition underscores Press Metal's commitment to global ESG standards and sustainable practices, further strengthening the group's value proposition for all stakeholders.

1. RM3,777,887,000 ︎

2. RM3,440,613,000 ︎

3. RM475,703,000 ︎

4. RM380,911,000 ︎

5. PATAMI: Also labelled as Profit attributable to equity holders of the parent in the Condensed Consolidated Income Statement ︎

6. RM402,299,000 ︎

7. RM306,116,000 ︎

8. RM11,349,519,000 ︎

9. RM10,270,490,000 ︎

10. RM1,619,936,000 ︎

11. RM1,117,757,000 ︎

12. RM1,316,168,000 ︎

13. RM893,877,000 ︎

14. RM105,636,000 ︎

15. RM1,692,557,000 ︎

16. RM2,062,624,000 ︎

17. RM255,603,000 ︎

18. China Plus One is the business strategy to avoid investing only in China and diversify into one other country. ︎

19. ESG: Environmental stewardship, Social responsibility & Governance excellence ︎