DRB-Hicom 1Q net loss widens to RM25.74 mil on loss incurred by PROTON

DRB-Hicom 1Q net loss widens to RM25.74 mil on loss incurred by PROTON
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KUALA LUMPUR (May 26): DRB-Hicom Bhd’s net loss in the first quarter ended March 31 (1QFY22) swelled to RM25.74 million from a net loss of RM16.96 million a year ago, underpinned by losses incurred at 50.1%-owned PROTON Holdings Bhd and the group’s property segment.

As a result, losses per share widened to -1.33 sen from -0.88 sen, its Bursa Malaysia filing showed on Thursday (May 26).

According to the group, its automotive segment suffered from the global microchip shortages due to supply chain issues and the major flood that crippled Klang Valley in mid-December last year.

Meanwhile, the group’s quarterly revenue declined by 12.59% to RM3.07 billion compared to RM3.51 billion as its automotive and postal sector delivered lower revenue contribution.

On a quarterly basis, the conglomerate’s net loss position during the quarter was in stark contrast to the RM117.47 million net profits registered in the preceding quarter.

Nevertheless, as the global economy re-opens, DRB-Hicom is confident that its businesses are gradually gaining momentum.

“For example, key contracts for aircraft assembly works under the aerospace segment were secured for the period until 2034.

“In addition, the postal segment expects improved performance with the on-going turnaround and transformation initiatives aimed at improving service levels and cost efficiencies.

“Other businesses in defence, banking, services and property will continue to build resilience and seize the emerging opportunities from the recovery,” the group said.

DRB-Hicom expects to recover particularly with the continued strong demand, new products, new markets and countermeasures against supply chain issues.

“With the opening of all business sectors, the Group anticipates a greater performance for the financial year ending December 31, 2022 (FY22) compared to the previous financial year,” it said.

Shares in DRB-Hicom settled one sen or 0.75% higher at RM1.34, giving it a market capitalization of RM2.59 billion.

Kamarul Azhar Mohamad Azmi