DRB-Hicom Q1 net loss widens to RM25.74m due to weaker revenue

KUALA LUMPUR: DRB-Hicom Bhd's net loss widened to RM25.74 million in the first quarter ended March 31, 2022 (Q1 FY2022) from RM16.96 million in the same period last year, in line with weaker revenue.

Its revenue fell 12.6 per cent to RM3.07 billion from RM3.51 billion previously, dragged down by lower revenue from the automotive, postal, logistics and catering services and properties sectors, the company said in a filing with Bursa Malaysia today.

Despite that, the board has recommended a final dividend of 2.0 sen per share amounting to RM38.66 million for FY2021, subject to shareholders' approval at its June 22, 2022 annual general meeting.

Explaining the year’s performance, the company told the stock exchange that its automotive sector recorded lower revenue due to PROTON’s stock shortage arising from disruption in supply by the flood-affected local vendors and chip shortages, while its postal segment’s weaker revenue was due to a decline in the courier business as consumers return to conventional shopping.

Freight forwarding, from its logistics services business, also fell due to reduced customer shipments and revenue from its properties sector saw lower revenue recognised from construction projects, the filing said.

On prospects, the company said its business operations are expected to recover, particularly with the continued strong demand, new products, new markets and counter measures against supply chain issues.

“As the global economy reopens, DRB-HICOM’s businesses are gradually gaining momentum. For example, key contracts for aircraft assembly works under the aerospace segment were secured for the period until 2034.

“With the opening of all business sectors, the group anticipates a greater performance for the financial year ending Dec 31, 2022 compared to the previous financial year,” it said.

DRB-Hicom said the postal segment expects improved performance with the on-going turnaround and transformation initiatives aimed at improving service levels and cost efficiencies.-Bernama