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KUALA LUMPUR (Bernama) – DRB-Hicom Bhd
posted a net profit of RM554.13 million in the fiscal year ended December 31, 2020 (FY20) on revenue of RM13.16 billion for the year.
In a statement today, the conglomerate said fiscal 2020 was the first full year for DRB-Hicom. in a revised financial year, therefore no comparable quarterly or annual figures are available.
For the fourth quarter, DRB-HICOM posted a net profit of RM985.99 million and revenue of RM4.85 billion.
For the automotive sector, DRB-HICOM continued to gain a positive impact from the government’s decision to declare an exemption from sales tax for the purchase of passenger vehicles.
It secured RM8.0 billion revenue for the sector during FY20, with the fourth quarter posting its best quarter for the 12-month period with RM2.6 billion in sales, 3.0 percent more than the previous quarter.
Meanwhile, service sector revenue amounted to RM 3.5 billion in FY20, mainly driven by the performance of postal and logistics subsidiaries, as well as banking operations.
For the fourth quarter, revenue was RM877.4 million, which was the sector’s best performing second quarter after the third quarter, in which revenue reached RM918.7 million.
In the real estate sector, revenue was RM1.3 billion, driven by the completion of disposals of real estate assets and investments by the group.
The sale, first announced in 2018 as part of the restructuring of DRB-HICOM’s real estate businesses, saw the group recognize a profit of RM862.6 million.
“Disposals include residential land, and the real estate sector is now more focused on industrial properties, with our extensive land bank in Kedah, Perak, Melaka and Johor. It also marks DRB-HICOM’s exit from the hotel industry.” the group said.
Amid a difficult economic outlook, DRB-HICOM is expecting another challenging financial year ending on December 31, 2021 as global developments surrounding containment of COVID-19 remain fluid.
“Therefore, DRB-HICOM will continue to adopt or, where necessary, design new prudent cost management approaches, while focusing on strengthening its respective core business segments to ensure business continuity,” he added.
DRB-HICOM said its businesses in the defense, aerospace, banking, services and property segments will continue to target operational efficiency to optimize costs and improve productivity.
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