KUALA LUMPUR: ARB Bhd's net profit surged by 70.8 per cent to RM74.2 million for the financial year ended 31 December 2021 (FY21) compared to RM43.5 million a year ago, mainly due to the contribution from the other operating income from enterprise resource planning (ERP) and Internet of Things (IoT) segments.
ARB's revenue surpassed the RM300 million mark for FY21 with RM309.2 million, representing an increase of 41 per cent from RM219.5 million recorded in FY20.
Executive director Datuk Sri Larry Liew Kok Leong said revenue is now above the RM300 million level, and it gives the company a comfortable size to scale its business and expand its earnings margin.
"In addition, the company's cloud-based revenue services can create a sustainable recurring income to the ARB, which provides us with a good base to grow from here," he said in a statement today.
ARB has also continued to maintain a strong momentum growth in the fourth quarter (Q4) FY21 as revenue jumped by 87 per cent to RM135.6 million, mainly due to revenue growth in the ERP and IoT segment.
However, ARB's profit before tax (PBT) for the quarter was down by 20 per cent to RM16.4 million compared to RM20.6 million recorded in Q4 FY20 amidst the increase of amortisation of intangible assets of RM3.3 million and depreciation of property, plant and equipment of RM2.6 million.
Looking forward, ARB is confident that the strong momentum growth in its ERP and IoT segments will continue to be the key catalyst for its growth.
The company expect to receive a higher revenue contribution from its IoT division for the hydroponics IoT solutions.
With the available opportunities in hydroponics, ARB aims at capitalising on the rising adoption of smart hydroponics techniques in commercial farming by expanding its IoT business into the provision of hydroponics IoT solutions.
"We are excited with the growth prospect beyond FY22 led by the strong momentum growth seen in our ERP and IoT business.
"We believe ARB is in a good position to expand its business regionally as the Malaysian ERP market is expected to grow at a compound annual growth rate (CAGR) of 11.4 per cent over the next five years, while the IoT market will grow at a CAGR of 24.7 per cent over the next five years.
"This strong growth momentum will be a key catalyst for us at least over the next five years as we expand our customer base and earnings margin," Larry said.
Moving forward, ARB will continue to focus on executing and implementing the business strategies to ensure the company remains on the right track to deliver balanced growth and create value to the shareholders.
In the meantime, the company also plans to acquire potential businesses that contribute significantly to the earnings.