DRB-Hicom returns to the black in FY22

DRB-HICOM Bhd has returned to the black for the financial year ended Dec 31, 2022 (FY22) with a net profit of RM187.71 million compared to a net loss of RM296.42 million in the previous year.

This was achieved on a revenue of RM15.51 billion, up 25% from FY21.

For the fourth quarter ended Dec 31, 2022 (4Q22), the company posted a net loss of RM100.06 million compared to a net profit of RM117.47 million in the same quarter a year earlier. Its quarterly revenue of 4.35 billion was up 5% from a year before, according to its exchange filing yesterday.

In 4Q22, DRB-Hicom registered a pre-tax loss of RM73.13 million, mainly due to year-end assessment of impairment loss of assets.

In a statement, the company said three sectors led the sterling 25.3% revenue growth in FY22, with the automotive sector leading the revenue growth with an increase of RM2.89 billion (FY22: RM11.09 billion, FY21: RM8.20 billion).

It said the rise in automotive demand driven by the Government’s sales tax holiday boosted revenue for Proton and other marques under the DRB-Hicom umbrella, sending revenue rising more than 35.2%.

In addition to Proton and other automotive distribution companies, it said the increased demand also trickled down to  manufacturing and engineering companies in the group, as the national total industry volume set a new record of 720,658 units in FY22 (FY21: 508,883 units, up 41.6%).

For FY22, the national carmaker Proton sold its highest number of units since 2013 with a rise of 23.3% year-on-year, selling 141,432 units sold for both domestic and export markets, with Proton X50 continuing to be the best-selling SUV in Malaysia with 40,681 units sold in the year.

At the same time, it said the introduction of new models across all marques within the group including Honda, Mitsubishi and Isuzu is expected to boost the automotive sector and entice buying interest among consumers.

DRB-Hicom also said that the aerospace and defence sector recorded an increase in revenue by RM254.46 million or 41% (FY22: 874.91 million, FY21: RM620.44 million).

The group’s defence unit recorded higher deliveries of their products, while the aerospace unit benefitted from the global resumption of commercial flights following the Covid-19-enforced travel bans.

In the banking sector, DRB-Hicom said revenue growth for FY2022 was RM152.36 million or 13.7% better than the corresponding year (FY21:RM1.12 billion), mainly contributed by higher financing income and volume from property and personal financing to customers.

It said other sectors in the group charted better year-on-year revenues except for the postal sector. – by TMR / pic TMR Flie