PETALING JAYA: DRB-HICOM Bhd recorded a pre-tax profit (PBT) of RM446.9 million for the financial year ended Dec 31, 2023 (FY23), up 9% from RM410 million in FY22. This was on the back of a 2.2% increase in revenue to RM15.9 billion (FY22: RM15.5 billion).
For the quarter ended Dec 31, 2023, the group recorded a PBT of RM45.7 million, on revenue of RM3.8 billion.
The increase in PBT for FY23 was primarily driven by strong performance within the automotive sector, which saw revenue growth of 2.3%, rising to RM11.3 billion from RM11.1 billion in FY22. The improved performance was mainly attributed to increased vehicle sales volume, strong after-sales performance and effective operational cost reduction initiatives.
National carmaker Proton achieved record high vehicle sales since 2011 with 154,611 units sold in 2023 (FY22: 141,432 units). Honda retained its number one position in the non-national passenger vehicle segment which it had held since 2014, achieving its 2023 sales target of more than 80,000 units.
The banking sector achieved revenue increase of 35.3% (FY23: RM1.7 billion against FY22: RM1.3 billion). This was primarily due to higher financing income fuelled by an increase in financing volume attributed to sustainable expansion and a growing customer base, along with a rise in the Overnight Policy Rate to 3% in FY23 from 2.75% in FY22.
The services sector recorded revenue increase of 13.4% (FY23: RM833.6 million, FY22: RM734.8 million). This was mainly contributed by the inflight catering business with a higher number of meals prepared and ground handling business in line with the growing number of flights, as well as higher revenue from the Ar-Rahnu business.
The group’s banking business continued to operate efficiently while maintaining prudent risk profiles. The aerospace and defence, postal, services and property sectors remained vigilant, strengthening operational efficiencies and practising prudent financial management, while simultaneously pursuing the group’s sustainability agenda.
DRB-HICOM expects a positive performance for the financial year ending Dec 31, 2024.
