KUALA LUMPUR (Feb 21): DRB-Hicom Bhd slipped into the red with a net loss of RM100.06 million for the fourth quarter ended Dec 31, 2022 (4QFY2022), against a net profit of RM117.47 million a year ago.

The quarterly loss was partly due to impairment loss on assets in certain subsidiary companies, coupled with lower profit from Proton, which was attributable to the product mix and a lower share of profits from joint ventures and associated companies.

The last time the group sank into the red was 1QFY2022, with a net loss of RM25.74 million and a revenue of RM3.07 billion. 

For 4QFY2022, DRB-Hicom posted a loss per share of 5.18 sen, versus earnings per share of 6.08 sen a year ago. Quarterly revenue, however, increased 5.42% year-on-year (y-o-y) to RM4.35 billion, from RM4.12 billion previously.

No dividend was declared for the quarter under review.

Nonetheless, the group performed well for FY2022. Despite losses in the postal division and properties division, it achieved an annual net profit of RM187.71 million, against an annual loss of RM296.42 million for FY2021. Annual revenue rose 25.32% to RM15.51 billion from RM12.38 billion, lifted by contributions from almost all its business segments, except for the postal division.

Three sectors led the sterling 25.32% revenue growth in FY2022, with the automotive sector recording the highest revenue increase of RM2.89 billion to RM11.09 billion, from RM8.20 billion for FY2021.

It noted that national carmaker Proton concluded 2022 on an upbeat note with 141,432 units sold, marking a rise of 23.3% y-o-y and the best annual figure since 2013.

“The rise in automotive demand driven by the government’s sales tax holiday boosted revenue for Proton and other marques under the DRB-Hicom umbrella, sending revenue rising more than 35.2%.

“In addition to Proton and other automotive distribution companies, the increased demand also trickled down to manufacturing and engineering companies in the group, as the national total industry volume set a new record of 720,658 units in FY2022,” it added.

The aerospace and defence sector also recorded an increase in revenue of 41% to RM874.91 million for FY2022, as the defence unit recorded higher deliveries of products, while the aerospace unit benefited from the global resumption of commercial flights following the relaxation of Covid-19-enforced travel bans.

As for the banking sector, revenue for FY2022 was 13.7% better than the previous year, reaching RM1.27 billion, mainly contributed by higher financing income and volume from property and personal financing to customers.

On its outlook, DRB-Hicom expects its performance to remain positive in FY2023.

The conglomerate said the introduction of new models across all marques within the group, including Honda, Mitsubishi and Isuzu, is expected to boost the automotive sector and entice buying interest among consumers. This will also provide a corresponding boost to the manufacturing and engineering companies within the group.

As for the banking sector, it will continue to strengthen the business by intensifying its digitalisation efforts and technological capabilities.

Meanwhile, the postal sector, it said, remains focused on executing its transformation plan in an increasingly challenging business environment.

“The rest of the group’s sectors, including defence and aerospace, services and properties, will continue to explore growth opportunities, and at the same time optimise operational excellence,” it added.

DRB-Hicom shares closed four sen or 2.31% lower at RM1.69 on Tuesday (Feb 21), valuing the group at RM3.27 billion.