Revenue reached RM4.11 billion in the same period
SHAH ALAM, Thursday, 22 May 2025: DRB-HICOM Berhad ("DRB-HICOM" or "the Group") recorded a pre-tax profit ("PBT") of RM92.62 million for the first quarter of 2025 ("Q1 2025"), on the back of RM4.11 billion in revenue. This marks a notable turnaround from the preceding quarter ("Q4 2024"), which recorded a pre-tax loss of RM35.17 million, reflecting improved performance across most business sectors, driven by stronger sales and enhanced cost efficiency. REVENUE PERFORMANCE ACROSS BUSINESS SECTORSFor the financial period under review, the Group achieved revenue of RM4.11 billion, representing a modest 5% decrease compared to RM4.33 billion in the corresponding quarter ("Q1 2024"). The slight moderation was primarily due to softer contributions from the Automotive sector, consistent with the 7% decline in Total Industry Volume ("TIV") during the quarter.
Despite the industry-wide challenges, the Group's diversified portfolio remained a key strength, with encouraging growth recorded in the Banking and Services sectors, helping to mitigate the impact from the Automotive sector:
- Banking: The sector posted revenue of RM533.09 million, representing a 4.4% increase compared to RM 510.41 million in Q1 2024. This growth was mainly driven by higher financing income, underpinned by an expanding customer base and sustained growth in financing volume.
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Services: Revenue improved by 8.0% to RM51.37 million (Q1 2024: RM 47.56 million), primarily due to increased commercial vehicle inspection volumes within the Group's vehicle inspection operations.
PROSPECTS FOR THE FINANCIAL YEAR ENDING 31 DECEMBER 2025
The Malaysian economy is poised to remain resilient in 2025, despite prevailing global uncertainties, particularly those stemming from US-imposed tariffs on Malaysian exports. Bank Negara Malaysia's
decision to maintain the Overnight Policy Rate at 3% since May 2023 reflects a balanced approach to supporting growth while preserving price stability amid moderate inflation. However, the global outlook remains fluid, shaped by evolving US trade policies, rising geopolitical tensions, and persistent financial market volatility.
The Malaysian Automotive Association anticipates a lower Total Industry Volume in 2025 compared to 2024, citing softer demand amid a subdued global outlook, easing of order backlogs, and potential impact of fuel subsidy rationalisation. As such, the sales performance of new models across the Group's marques is dependent on market sentiments and economic conditions.
DRB-HICOM remains focused on advancing digital transformation across key sectors such as Banking and Postal services, as part of its ongoing efforts to improve operational efficiency. In other areas, including Aerospace and Defence, Services, and Properties, the Group continues to strengthen business fundamentals to support resilience and long-term sustainability.
The Group anticipates a moderate outlook for the financial year ending 31 December 2025.
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ABOUT DRB-HICOMhttps://www.drb-hicom.com
DRB-HICOM Berhad ("DRB-HICOM") is one of Malaysia's leading group of companies with core businesses in the Automotive, Aerospace & Defence, Banking, Postal, Services, and Properties sectors. With 89 active companies in its stable and more than 42,000 employees group-wide, DRB-HICOM's aim is to continue adding value and propelling the nation's development. In the Automotive sector, DRB-HICOM is involved in the manufacturing, assembly and distribution of passenger and commercial vehicles, including the national motorcycle. In Aerospace and Defence, DRB-HICOM is involved through its subsidiaries CTRM and DEFTECH, while it is represented in the postal segment through its subsidiaries Pos Malaysia, and banking through Bank Muamalat. In the Services segment, DRB-HICOM is involved in various businesses, including concession, education, aviation and logistics and investment holdings whereas in Properties, DRB-HICOM is involved in the development of industrial properties.
STATEMENT ON FORWARD - LOOKING DISCLOSURES
All statements herein, other than historical facts, contain forward-looking statements and are based on DRB-HICOM's current forecasts, expectations, targets, plans, and evaluations. Any forecasted value is calculated or obtained based on certain assumptions. Forward-looking statements involve inherent risks and uncertainties.
A number of significant factors could therefore cause actual results to differ from those contained in any forward-looking statement. Significant risk factors include:
Feasibility of each target and initiative as laid out in this news release;
Fluctuations in interest rates, exchange rates and oil prices;
Changes in laws, regulations and government policies; and
Regional and/or global socioeconomic changes.
Potential risks and uncertainties are not limited to the above and DRB-HICOM are not under any obligation to update the information in this news release to reflect any developments or events in the future.
If you are interested in investing in DRB-HICOM, your investment decision is at your own risk, taking the foregoing into consideration. Please note that neither DRB-HICOM nor any third-party providing information shall be responsible for any loss or damage that may result from your investment in DRB-HICOM based on the information presented in this news release.
MEDIA CONTACT POINT:Leong Shen-li (Mr)
Senior Manager
Group Strategic Communications Division DRB-HICOM Berhad
Tel: +603 2052 8066
leong.shenli@drb-hicom.com