KUALA LUMPUR: Conglomerate DRB-Hicom Bhd suffered RM306mil deficit in the second quarter, dragged down by modification loss at Bank Muamalat Malaysia Bhd and lower car sales during the movement control order (MCO) period.
The group’s automotive brands represent some 33% of the total industry volume in Malaysia.
"The Group’s weaker financial performance reflect the slowdown of business activities in the six months ended June 30," it said in a statement today.
"Recovery efforts by the Group’s individual businesses are currently on-going and this should be reflected in the performance of the second half of 2020," it added.
DRB-Hicom owns a 50.1% stake in Proton Holdings Bhd, which reported its highest monthly sales in July since June 2012.
"Reaping the benefits from the sales tax exemption for passenger vehicles until December 2020, the Group’s other marques are also expected to boost their sales performance in second half 2020 featuring new or revised models," it said.
Meanwhile, the group expects subsidiary Pos Malaysia Bhd to benefit from growing demand for e-commerce.
"Despite the challenging environment, Pos Malaysia’s on-going transformation efforts will augment the improved tariff rates approved earlier in the year, and the growing demand for e-commerce," it said.
"Other businesses in the Group will continue to adapt to the so-called “new normal” environment to ensure financial sustainability, against the backdrop of changes in customer and consumer behaviours," it added.
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