DRB-HICOM POSTS RM282.56 MLN PRE-TAX PROFIT FOR FIRST NINE MONTHS OF FY2024

KUALA LUMPUR, Nov 21 (Bernama) -- DRB-Hicom Bhd posted a pre-tax profit of RM282.56 million for the first nine months ended Sept 30, 2024 (9M FY2024) supported by stable revenue of RM12.23 billion, reflecting a marginal increase of 1.2 per cent compared to the same corresponding period last year.

In a statement here today, the group said the revenue growth reflected its resilience and ability to adapt to evolving market conditions, driven by contributions from its core sectors despite ongoing challenges

However, the group recorded a net loss of RM5.29 million in the third quarter of 2024 (3Q 2024) against a net profit of RM70.80 million in 3Q 2023, according to a filing with Bursa Malaysia.

DRB-Hicom said that “the lower financial results were mainly due to a reduced share of results from joint ventures and associated companies under the automotive distribution sector, driven by lower vehicle sales volume, and a higher mark-to-market loss on derivatives amounting to RM80.27 million in the current quarter.”

Revenue, however, jumped by 3.4 per cent to RM4.13 billion from RM4.00 billion previously, mainly attributable to higher sales from the banking, services, and aerospace and defence sectors, it said.

The home-grown Malaysian automotive group said the revenue growth reflects the group’s resilience and ability to adapt to evolving market conditions, driven by contributions from its core sectors despite ongoing challenges.

For the 9M FY2024, the group’s net profit fell to RM69.17 million against RM212.42 million posted in the 9M 2023, while revenue increased to RM12.23 billion in 9M FY2024 versus RM12.08 billion previously.

“The banking sector revenue increased by 26.2 per cent to RM1.59 billion for the 9M FY2024 (9M FY2023: RM1.26 billion), driven by higher financing income, attributed to growth in financing volume.

“The aerospace and defence sector revenue grew by 24.0 per cent to RM584.05 million (9M FY2023: RM470.83 million), reflecting higher deliveries of single-aisle aircraft and selected aircraft parts,” it said.

The group said that the services sector revenue rose by 13.4 per cent to RM691.50 million (9M FY2023: RM609.93 million), supported by increased activity in in-flight catering and ground handling business, in line with the recovery in air travel.

On prospects, DRB-Hicom said it maintains a satisfactory outlook for the financial year ending Dec 31, 2024.

“DRB-HICOM’s strategic focus on digital transformation extends across multiple business sectors, including banking and postal sectors, aimed to optimise operational efficiency,” it added.

-- BERNAMA