corporate

DRB-Hicom posts RM5m net loss in Q3 

KUALA LUMPUR: DRB-Hicom Bhd registered a net loss of RM5.29 million in the third quarter (Q3) 2024 from a net profit of RM70.80 million a year ago.

In its filing with Bursa Malaysia today, DRB-Hicom said that the losses were mainly due to a reduced share of results from joint ventures and associated companies under the automotive distribution sector.

"This is driven by lower vehicle sales volume, and a higher mark-to-market loss on derivatives amounting to RM80.27 million in the current quarter," it said. 

Despite the losses, DRB-Hicom's revenue rose 3.4 per cent to RM4.13 billion from RM4.00 billion previously due to higher sales from the banking, services, and aerospace and defence sectors. 

For the first nine months of its financial year ending December 31, 2024 (9M24), DRB-Hicom's net profit fell to RM69.17 million against RM212.42 million posted in 9M 2023.

At the same period, the company's revenue increased to RM12.23 billion in 9M FY2024 versus RM12.08 billion previously.

No interim dividend has been declared in the financial period. 

Overall, DRB-Hicom said its strategic focus on digital transformation extends across multiple business sectors, including banking and postal sectors aimed to optimise operational efficiency. 

For other business sectors such as aerospace and defence, services, and properties, the company remains committed to its strategy in strengthening business resilience and long-term stability.

"The group maintains a satisfactory outlook for the financial year ending December 31, 2024," it added. 

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