DRB-HICOM POSTS LOWER NET PROFIT OF RM22.55 MLN IN FY2024

KUALA LUMPUR, Feb 27 (Bernama) -- DRB-HICOM Bhd posted a significantly lower net profit of RM22.55 million for the financial year ended Dec 31, 2024 (FY2024), compared to the RM238.88 million net profit recorded in FY2023.

The lower performance was mainly due to reduced profits from its automotive, banking, and services segments, albeit partially mitigated by improved profits from its properties, aerospace and defence, and postal segments.

Revenue, however, was higher at RM16.19 billion against RM15.85 billion previously, it said in a filing to Bursa Malaysia today.

For the fourth quarter of FY2024 (4Q 2024), the group recorded a net loss of RM46.62 million against net profit of RM26.47 million in 4Q 2023, while revenue grew to RM3.97 billion from RM3.78 billion previously. 

According to DRB-HICOM, the losses in 4Q 2024 were primarily attributed to reduced profit in the banking sector, which was impacted by higher credit loss allowances on customer financing and investment impairments. 

"Additionally, the automotive sector posted lower profits, mainly due to higher discounts and incentives to clear year-end stock. These were partially offset by higher contributions from the properties, as well as the aerospace and defence sectors," it said. 

On its prospects, the group anticipates a moderate outlook for FY2025, adding that it will continue to leverage its diversified portfolio while strengthening its digital capabilities, particularly in the banking, postal, and services sectors. 

"Meanwhile, the increasing demand for global travel presents growth opportunities for the group’s aerospace business. 

"Additionally, the ongoing development of the Automotive High-Tech Valley in Tanjong Malim, Perak, will be the catalyst for the properties sector in the future,” added DRB-HICOM. 

-- BERNAMA