KUALA LUMPUR (Nov 21): DRB-Hicom Bhd (KL:DRBHCOM) saw a net loss of RM5.29 million in the third quarter ended Sept 30, 2024 (3QFY2024), compared with a net profit of RM70.8 million in the same quarter last year.
In a bourse filing on Thursday, the group reported its pre-tax profit declined by 60.29% year-on-year to RM45.86 million during the quarter, from RM115.49 million.
“The lower financial results were mainly due to a reduced share of results from joint ventures and associated companies under the automotive distribution sector, driven by lower vehicle sales volume and a higher mark-to-market loss on derivatives amounting to RM80.27 million in the current quarter,” said DRB-Hicom.
Revenue for the quarter increased by 3.4% to RM4.13 billion, compared with RM4 billion in the corresponding quarter, mainly attributable to higher sales from the banking, services, and aerospace and defence sectors.
However, the increase in revenue was partially offset by lower revenue from the postal, automotive and properties sectors.
The decline in the postal sector’s revenue was mainly due to a drop in international business and bulk mail volume within the mail business segment, on the back of lower cross-border volumes amid an industry-wide slowdown.
The group achieved revenue growth across key sectors — banking rose 26.2% (RM1.59 billion), driven by higher financing income; aerospace and defence increased 24.0% (RM584.05 million), with more aircraft deliveries; and services grew 13.4% (RM691.50 million), bolstered by a rebound in air travel.
Basic loss per share for the quarter came in at 0.27 sen, compared with an earnings per share of 3.66 sen a year earlier. The group did not declare dividends for the quarter under review.
For the nine-month period ended Sept 30, 2024 (9MFY2024), DRB-Hicom’s net profit plunged 67.4% to RM69.2 million, from RM212.4 million recorded in the same period last year, despite a marginally higher revenue of RM12.23 billion.
Looking ahead, the group said its 50.01% subsidiary Proton Holdings Bhd is gaining momentum with strong third-quarter sales. The automaker is also set to launch Malaysia’s first electric vehicle, the Proton e.MAS 7.
At the close of trade, DRB-Hicom’s share price was down 2.5 sen or 2.45% at 99.5 sen, valuing the group at RM1.92 billion. Year-to-date the stock has fallen 28.42%.