KUALA LUMPUR, Feb 28 — DRB-Hicom Bhd swung to the black with a net profit of RM358.97 million for the nine months ended December 31, 2019, from a net loss of RM5.0 million in the previous year’s corresponding period.
The conglomerate, which last year changed its financial year end from March 31 to December 31, attributed the better performance largely to the automotive business.
That segment led the growth in the group’s revenue, which increased 16.9 per cent year-on-year (y-o-y) to RM10.54 billion, it said in a filing with Bursa Malaysia today.
The automotive revenue rose 33.4 per cent y-o-y to RM7.04 billion, offsetting the contraction in the services and properties sectors’ revenue.
“This (the auto sector’s performance) was in line with the renewed popularity of carmaker Proton which sold 100,821 units in the year under review,” DRB-Hicom explained.
In the services sector, revenue slipped by RM161.5 million y-o-y in the nine months to RM3.20 billion due to lower contribution from Pos Malaysia and Bank Muamalat Malaysia, it said in a statement.
The lower contribution was also due to the de-consolidation of Alam Flora Sdn Bhd’s results from the group in November 2019 as the waste management company was disposed to Malakoff Corporation Bhd.
For the three-month period ended Dec 31, 2019, DRB-Hicom achieved a net profit of RM272.68 million, up from RM73.02 million in the same period in 2018.
Revenue increased to RM3.50 billion from RM3.17 billion previously.
DRB-Hicom said it remained positive on its outlook for 2020 amid a challenging landscape. It noted that the automotive sector would remain the largest revenue contributor, with the launches of new models by various marques in the group this year.
The group said the implementation of the new tariff for commercial postage and international businesses by Pos Malaysia as well as the business restructuring would improve its financial performance.
“The group’s other businesses in defence, aerospace, banking, services and property segments will continue to strengthen their business position amid stiff competition while maintaining prudence in operating cost,” it added. — Bernama
