Bernama
KUALA LUMPUR: DRB-Hicom Bhd remained in the red in the first quarter ended June 30, 2018, posting a net loss of RM144.76 million compared with a RM120.55 million loss a year earlier.
Revenue fell to RM2.65 billion versus RM3.13 billion previously, mainly due to lower sales of vehicles by its subsidiary Proton Holdings Bhd and other automotive companies under the group.
In a filing with Bursa Malaysia today, DRB-Hicom said the results for the quarter under review were affected by the weak performance of certain subsidiaries in the automotive and services sectors.
However, higher share of profits from associated companies and the property sector mitigated the overall net loss, it added.
“Revenue for the automotive sector came in at RM1.40 billion, with national carmaker Proton delivering 6,173 units in June 2018. As with the rest of the industry, all marques under the group recorded markedly increased sales in June, and have continued to do so in the following months.
“DRB-Hicom’s services sector revenue was recorded at RM1.11 billion for the period under review, while the property sector’s revenue for the three-month period amounted to RM142.80 million,” the group said in a media statement.
Moving forward, DRB-Hicom said its automotive sector was expected to gain momentum, with the impending Proton sports utility vehicle (SUV) to be launched by the end of 2018.
It said new product launches from other marques as well as promotional activities would act as catalysts to drive sales volume further.
To better focus on capital management and flexibility to pursue growth strategies, the group said it would continue to find ways to unlock value from its assets, citing the sale of waste management subsidiary Alam Flora Sdn Bhd, and the proposed rationalisation of non-industrial property assets as in line with this initiative.
It added that amid a challenging business landscape, the group would also remain focused on driving operational efficiencies while maintaining capital discipline and operational excellence across all its businesses and subsidiaries to steer the entities forward.
– BERNAMA