KUALA LUMPUR (Feb 25): UMW Holdings Bhd's net profit for the fourth quarter ended Dec 31, 2021 (4QFY21) surged 55% to RM239.97 million from RM154.86 million, supported by strong contributions from its automotive and equipment segments as demand recovered after the lifting of the Full Movement Control Order.
Earnings per share increased to 20.54 sen from 13.25 sen, its Bursa Malaysia filing showed on Friday (Feb 25).
The group said its quarterly revenue rose by 12% to RM3.65 billion from RM3.24 billion, underpinned by higher vehicle and equipment sales.
Meanwhile, the group declared a final dividend of 5.8 sen, to be paid on April 29.
For the full FY21, the group's net profit came in higher by 31% at RM268.23 million from RM204.6 million reported for FY20, in line with the increase in revenue as well as recognition of deferred tax assets arising from approval of an incentive approved in 4QFY21.
Annual revenue, on the other hand, increased by 16% to RM11.06 billion against RM9.55 billion in FY20 due to higher contributions from its automotive and equipment segments.
On a quarterly basis, the group returned to the black in the current quarter from a net loss of RM47.9 million in 3QFY21 while revenue increased 81% from RM2.02 billion.
Despite the challenges faced by the group in FY21, from the semiconductor chip shortages to disruptions caused by the Covid-19 pandemic and massive floods affecting its operations, UMW president and group chief executive officer Datuk Ahmad Fuaad Mohd Kenali said the group remained resilient and delivered improved results compared with in FY20.
"The group expects business operations both domestically and regionally to gradually recover from 2022 onwards and will continuously assess its strategies as well as initiatives to improve its cost management and operational efficiency to enhance its resilience and to continue to deliver value to its shareholders," he said.
Shares in UMW ended eight sen or 2.65% higher at RM3.10 on Friday, giving it a market capitalisation of RM3.62 billion.