DRB-Hicom’s net profit slips to RM123m in FY19

KUALA LUMPUR, May 30 — DRB-Hicom Bhd’s net profit for the financial year ended March 31, 2019, (FY19) declined to RM122.87 million from RM430.37 million recorded in the FY18.

Revenue, however, increased 1.8 per cent to RM12.48 billion from RM12.25 billion

For the fourth quarter, it recorded a net profit of RM127.86 million from a net loss of RM59.41 million.

Revenue was higher at RM3.47 billion from RM2.98 billion, on higher revenue of RM7.36 billion contributed by the automotive companies particularly the sale of Proton X70.

Proton had received 30,000 orders and delivered 14,000 units of X70,  it said in a statement today.

The group’s services sector also recorded higher revenue of RM4.58 billion despite the pressure on Pos Malaysia Bhd’s postal services. 

In contrast, the property sector’s net profit was lower at RM540 million due to smaller revenue from on-going construction projects.

“The group has recorded its full year of operating profit, the first time it has achieved this in three years,” it said, adding that operating profit stood at RM342 million from a loss of RM817 million the year before.

For current FY20, DRB-Hicom expected the return of consumer confidence towards Proton on the back of the quality improvements would be sustained with the recent launches of the face-lifted Iriz, Persona and Exora.

“This will also be boosted by the impending launch of their updated iconic model, the Proton Saga, and the roll-out of the locally assembled version of X70 during the current financial year,” it said.

Meanwhile, the group’s other businesses in aerospace, defence, banking, postal and logistics, concession and property would continue to expand and broaden their customer base in order to remain competitive in the current challenging market conditions.

“At Pos Malaysia, the contraction of traditional mail continues to put pressure on earnings, while in the parcel delivery business, Pos Laju, faces challenges from new entrants, including e-hailing parcel services. However, Pos Laju remains the market leader in this segment.

“Pos Malaysia continues to engage regulators to seek a tariff revision for regulated services, given that the growth of postal service areas places immense pressure on the operating costs,” it said, adding that the group was hopeful to yield a positive outcome with the regulators. — Bernama

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