Proton drives Drb-hicom back to profit in Q3

Company posts Rm40mil earnings on back of sales of national car

PETALING JAYA: Drb-hicom Bhd recorded a net profit of Rm40.08mil for its third quarter ended Sept 30, 2019, compared with a net loss of Rm11.42mil in the previous corresponding period, boosted by an improved performance from its automotive subsidiary, Proton Holdings Bhd.

In a filing with Bursa Malaysia yesterday, the diversified company said revenue during the quarter increased to Rm3.59bil from Rm3.18bil a year earlier. Drb-hicom changed its financial year end to Dec 31 from March 31, previously.

For the nine-months period ended Sept 30, 2019, it recorded a net profit of Rm86.29mil compared with a net loss of Rm78.02mil in the previous corresponding period, while revenue during the period jumped to Rm7.03bil from Rm5.84bil a year earlier.

In a statement, the company said its automotive division, led by Proton, recorded revenue of Rm2.42bil for the three-month period to September 2019, rising almost half-a-billion ringgit against the same period in 2018.

“For the six-month period to Sept 30, 2019, revenue was Rm4.66bil, up Rm1.33bil from a year ago,” it said.

Drb-hicom added that Proton had underpinned its automotive division’s growth, with its market share moving to 15.8% year-todate.

“In the nine months of the calendar year, Proton sold 69,920 vehicles, compared with 49,233 units in the same period a year ago.

“This performance means Proton is now the second best-selling automotive brand in Malaysia today.

The new X70, the revamped Saga, Persona, Iriz, and Exora have all boosted the brand’s appeal to the market.”

The company however said revenue for the services division was lower as Pos Malaysia’s operating landscape remains challenging. For its property division, Drb-hicom said lower revenue was received from its construction projects, which were at different stages of completion.

Commenting on the prospects for the remainder of its financial year, Drb-hicom said it has been steadfast in the prolonged challenging environment, backed by its automotive division.

“With the financial year end now just a month away, Proton and all of Drb-hicom’s other automotive brands will seek to gain momentum with the usual array of aggressive year-end sales promotions as well as launches.

“Mitsubishi also launched a new Triton Quest 4x2 truck, complementing the new Triton range launched earlier this year while Audi introduced the new Q3 sport-utility vehicle earlier this month. Honda Malaysia has also hinted at an imminent launch of a facelifted version of their popular sedan, the Civic,” it added.