Hong Leong Industries' 3Q profit soars 51% due to insurance compensation

KUALA LUMPUR: Hong Leong Industries Bhd’s net profit surged 51 per cent year-on-year to RM99.43 million in the third quarter ended March 31, 2024, mainly due to a RM25 million insurance compensation received for the disruption caused by flood in the motorcycle business.

The group, which manufactures and distributes Yamaha motorcycles, said lower sales in the motorcycle business, however, dragged down its revenue to RM758.03 million from RM923.35 million a year earlier.

For the financial year-to-date, Hong Leong Industries reported a higher net profit of RM289.57 million compared with RM221.32 million in the preceding year’s corresponding period, while revenue fell to RM2.34 billion from RM2.65 billion previously.

It attributed the higher earnings to the favourable sales mix of better-margin motorcycle models, the insurance compensation, and an RM18.7 million gain from the sale of its wholly owned unit Hume Cemboard Industries Sdn Bhd for RM76.5 million.

On prospects, the group said motorcycle demand is expected to remain stable, and it will focus on growing and optimising the products with better margin.

"Barring any unforeseen circumstances, the board expects the group to achieve a satisfactory result for the financial year,” it said.

The group also declared a second interim dividend of 37 sen per share for the financial year ending June 30, 2024, which will be paid on June 25, 2024.

Along with a special dividend of 50 sen per share and interim dividend of 20 sen per share paid earlier, this raises the total dividend so far to 107 sen versus 57 sen in the preceding year’s corresponding period. - Bernama

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