UMW net profit jumps to RM101m in 1Q22

by TMR / Pic by MUHD AMIN NAHARUL

UMW Holdings Bhd’s net profit for the first quarter ended March 31, 2022 (1Q22), has increased by 26.7% year-on-year to RM101.2 million from RM79.8 million in 1Q21.

Revenue soared to RM3.65 billion from RM2.95 billion previously, mainly due to the higher sales in all core segments, save for the manufacturing and engineering segments following the disposal of a subsidiary in the prior year, the company said in a filing to Bursa Malaysia today.

Strong sales momentum from the economic recovery in 1Q22 has driven the group’s revenue compared to the economic environment during the Recovery Movement Control Order in 1Q21.

“The automotive segment revenue of RM3.1 billion was 28.1% higher than the RM2.4 billion reported in the corresponding quarter, mainly due to the higher number of vehicles sold in the current quarter.

“The equipment segment revenue of RM371.8 million was 11.8% higher than the RM332.5 million in the corresponding quarter, mainly due to the higher demand for the segment’s products and services in the local and overseas markets in the current quarter as businesses are gaining momentum due to the expected transition to the endemic phase,” the group said.

Due to its lower contribution from the Auto Components sub-segment following the disposal of a subsidiary in 2021 and lower lubricant demand, the manufacturing and engineering segment revenue only posted lower than the RM230.3 million reported in the corresponding quarter.

On prospects, UMW said it expects its performance for 2022 to be satisfactory, barring any unforeseen circumstances.

“The group will continue to remain vigilant on the potential challenges arising from the external environment, including the lingering threat of Covid-19, the persistent and prolonged supply chain disruptions, and the impact of further escalation of geopolitical conflicts.

“The group will continue to improve its resiliency through cost optimisation activities and improvement in operational efficiency,” it said.