PETALING JAYA: DRB-Hicom Bhd posted a net loss of RM306.08 million for its second quarter ended June 30, 2020 due to weaker performance of its automotive and services segment due to the impact of the movement control order (MCO) and the Covid-19 pandemic, foreign exchange losses, recognition of modification loss from the financing moratorium as well as impairment losses.
Its revenue stood at RM2 billion.
The group stated that there were no comparable quarter for its Q2’20 result following the change of its financial year end from March 31 to December 31.
According to its Bursa filing, DRB-Hicom’s automotive segment was significantly affected by the temporary business operation suspension from mid-March to early May during the MCO.
Its services segment which comprises banking and postal & logistic businesses were also affected by the containment measure despite being classified essential services, while the property segment’s revenue was affected by the temporary closure of construction sites due to the imposition of the MCO.
Moving forward, the group noted that the recovery efforts by its individual businesses are ongoing and should be reflected in its performance in the second half of the year.
For its automotive business, Proton sales have continued to rebound with July 2020 monthly sales reaching 13,216 units, the highest monthly sales since June 2012.
Despite the challenging environment, DRB-Hicom stated that its logistics & postal services business, 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.
Meanwhile, its other business will continue to adapt to the ‘new normal’ to ensure financial sustainability, against the backdrop of changes in customer and consumer behaviours.
The group outlined that due to the fears of the pandemic and its expected subsequent waves coupled with the potential of a further weakening economy globally, it remains cautious on the challenging financial year ending December 31, 2020.
Notwithstanding the above, it continues to take steps to proactively manage the businesses to ensure that the long-term prospects remain stable, which include on-going cost management and efficiency improvement efforts across the organisation.
In the first half of the year ended June 30, 2020 the group posted a net loss of RM479.36 million and a revenue of RM4.74 billion
source https://www.thesundaily.my/business/drb-hicom-sees-rm306m-net-loss-in-q2-from-mco-constraints-XF3722154
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