KUALA LUMPUR: Oriental Holdings Bhd has recorded a 70.1 per cent lower net profit to RM88.87 million in the third quarter ended September 30, 2024 (3Q FY2024) from RM297.42 million in the same period last year. Revenue, however, rose by 20.7 per cent to RM1.31 billion from RM1.09 billion.
According to BERNAMA News Agency, in a filing with Bursa Malaysia, Oriental Holdings detailed that for the cumulative nine-month period ended September 30, 2024 (9M 2024), its net profit declined to RM446.53 million from RM516.85 million previously. Meanwhile, revenue saw an increase of 20.4 per cent to RM3.68 billion from RM3.06 billion in the previous corresponding period.
The company attributed the increased revenue in 9M 2024 mainly to a higher contribution from the automotive segment, driven by a greater number of cars sold, particularly from retail operations in Malaysia and Singapore. Revenue and operating profit from the automotive segment rose by 35.9 per cent to RM2.12 billion and by 37.1 per cent to RM194.5 mill
ion, respectively.
In Malaysia, retail operations saw revenue increase by RM138.9 million, though operating profit decreased by RM1.2 million due to a 14.3 per cent rise in the number of cars sold. This was fueled by high demand for models such as the Civic, City, CR-V, and HR-V, as well as the newly launched WR-V in the second half of 2023. The decrease in operating profit was primarily due to intense competition impacting gross profit and rising operational costs.
The healthcare segment’s revenue increased to RM104.7 million, up from RM85.7 million year-to-date FY2023, with operating profit rising to RM18.9 million from RM10.7 million. This was attributed to an improved gross profit margin from a higher number of operating theatre cases, despite a 0.8 per cent drop in patient numbers.
Looking ahead, Oriental Holdings stated it will continue to focus on improving efficiency and seek new business opportunities to enhance synergy with existing operations. The automotive segment is expected to remain a key c
ontributor to the group’s performance amid competitive market conditions, with strong promotional campaigns by industry players.
The company noted that the automotive industry is subject to rapid changes driven by technological advancements, regulatory shifts, market demand, interest rates, and global events. Management remains committed to staying informed as the industry faces uncertainties heading into 2025.
In the plantation segment, management plans to ensure all estates and mills remain efficient, cost-effective, and competitive. Additionally, forex exposure of borrowings will be carefully monitored and managed.