KUALA LUMPUR: DRB-Hicom Bhd reported a net loss of RM5.29 million for the third quarter of 2024, a significant decrease from the net profit of RM70.80 million recorded in the same period last year.
According to BERNAMA News Agency, the company’s financial performance was primarily affected by a reduced share of results from joint ventures and associated companies in the automotive distribution sector. This decline was attributed to lower vehicle sales volumes and a substantial mark-to-market loss on derivatives, amounting to RM80.27 million in the current quarter. Despite this, DRB-Hicom’s revenue increased by 3.4 percent to RM4.13 billion, up from RM4.00 billion in the previous year, mainly due to higher sales in the banking, services, and aerospace and defense sectors.
In a separate statement, DRB-Hicom emphasized that the growth in revenue underscores the group’s resilience and adaptability to changing market conditions. This growth is driven by strong contributions from its core sectors, despite facing
ongoing challenges.
For the first nine months of the financial year ending December 31, 2024, DRB-Hicom’s net profit fell sharply to RM69.17 million, compared to RM212.42 million for the same period in 2023. However, revenue rose to RM12.23 billion, an increase from RM12.08 billion previously. The banking sector, in particular, saw a 26.2 percent increase in revenue to RM1.59 billion, driven by higher financing income and growth in financing volume.
The aerospace and defense sector also experienced significant growth, with revenue climbing 24.0 percent to RM584.05 million, reflecting increased deliveries of single-aisle aircraft and selected aircraft parts. Additionally, the services sector’s revenue rose by 13.4 percent to RM691.50 million, supported by increased activity in in-flight catering and ground handling businesses, aligning with the recovery in air travel.
Looking ahead, DRB-Hicom maintains a positive outlook for the financial year ending December 31, 2024. The company remains focused on strateg
ic digital transformation across various business sectors, including banking and postal, to enhance operational efficiency.