The group's fourth-quarter revenue increased 5.2% to RM3.97bil compared with RM3.77bil a year ago.
PETALING JAYA: DRB-Hicom Bhd
, which saw its earnings plunge by over 90% despite modest topline growth in the financial year ended Dec 31, 2024 (FY24), anticipates a “moderate” outlook for FY25.
In a filing with Bursa Malaysia, the diversified group said it remains committed to enhancing its product offerings, adopting advanced technologies and elevating customer experience across all automotive marques, including Proton, Honda, Mitsubishi and Isuzu.
“Leveraging on DRB-HICOM’s diversified portfolio, the group continues to demonstrate resilience while strengthening its digital capabilities, particularly in the banking, postal, and services segments,” the group said.
“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 property segment in the future.”
For the final quarter ended Dec 31, 2024 (4Q24), revenue increased 5.2% to RM3.97bil compared with RM3.77bil in the previous corresponding quarter.
This growth was mainly driven by higher sales across the properties, banking, services, automotive and postal segments.
However, the increase was partially offset by a decline in revenue from the aerospace and defence segment.
Net profit, however, slipped into the red, with the group reporting a net loss of RM46.6mil against a net profit of RM26.5mil in 4Q23.
The decline in performance was primarily attributed to reduced profit in the banking segment due to higher funding costs, margin compression and increased credit loss allowances for customer financing.
Additionally, the group’s automotive segment recorded lower profit, mainly due to a decline in sales volume.
However, this was partially offset by higher contributions from the properties and aerospace and defence segments.
For FY24, revenue rose 2.1% to RM16.19bil from RM15.85bil in the previous financial year.
However, the automotive segment’s revenue contribution declined by 1.6% to RM11.15bil from RM11.34bil, primarily due to lower sales volume of Proton vehicles and reduced revenue from the manufacturing, engineering, and automotive distribution businesses.
Furthermore, net profit for FY24 plunged 90.6% to RM22.55mil from RM238.88mil in FY23, translating to earnings per share of 1.17 sen compared with 12.36 sen previously.
The weaker performance was mainly due to reduced profits in the automotive, banking, and services segments.
The decline was partially mitigated by improved contributions from the properties, aerospace and defence, and postal segments.
