KUALA LUMPUR (Bernama) -- DRB-Hicom Bhd posted a net profit of RM554.13 million in the financial year ended Dec 31, 2020 (FY20) on the back of a RM13.16 billion revenue for the year.
In a statement today, the conglomerate said FY20 was the first full year for DRB-Hicom in a revised financial period, thus no comparable quarterly or annual figures are available.
For the fourth quarter, DRB-HICOM recorded a net profit of RM985.99 million and a revenue of RM4.85 billion.
For the automotive Sector, DRB-HICOM continued to garner positive impact from the government’s decision to declare a sales tax holiday for passenger vehicle purchases.
It secured a revenue of RM8.0 billion for the sector during FY20, with fourth quarter recording its best quarter for the 12-month period with RM2.6 billion worth of sales, up 3.0 per cent from the preceding quarter.
Meanwhile, revenue for the services sector came in at RM3.5 billion in FY20, mainly boosted by the performance of postal and logistics subsidiaries as well as banking operations.
For fourth quarter, revenue was RM877.4 million, which was the sector’s second-best performing quarter after the third quarter, which saw revenue hit RM918.7 million.
At the properties sector, revenue was RM1.3 billion, boosted by the completion of the disposals of property assets and investments by the group.
The disposal, first announced in 2018 as part of the restructuring of DRB-HICOM’s property businesses saw the group recognise a gain of RM862.6 million.
"Among the disposals were residential landbank, with the properties sector now focusing more on industrial properties, with our extensive landbank in Kedah, Perak, Melaka, and Johor. It also marks DRB-HICOM’s exit from the hospitality industry,” the group said.
Amid a difficult economic landscape, DRB-HICOM expects another challenging financial year ending Dec 31, 2021 as the global developments surrounding the containment of COVID-19 remain fluid.
"Hence, DRB-HICOM will continue to adopt or where necessary, design new prudent cost management approaches, whilst focusing on strengthening its respective core business segments to ensure business continuity,” it added.
DRB-HICOM said its businesses in the defence, aerospace, banking, services and properties segments will continue to target for operating efficiencies towards optimising costs while improving productivity.