KUALA LUMPUR, Nov 21 (Bernama) -- Oriental Holdings Bhd has recorded a 70.1 per cent lower net profit to RM88.87 million in the third quarter ended Sept 30, 2024 (3Q FY2024) from RM297.42 million in the same period last year.
Revenue was up by 20.7 per cent to RM1.31 billion from RM1.09 billion.
In a filing with Bursa Malaysia, Oriental Holdings said that for the cumulative nine-month period ended Sept 30, 2024 (9M 2024), its net profit declined to RM446.53 million from RM516.85 million previously, while revenue increased by 20.4 per cent to RM3.68 billion from RM3.06 billion in the previous corresponding period.
It said the increased revenue in 9M 2024 was mainly due to higher contribution from the automotive segment attributed to higher number of cars sold especially from the retail operations in Malaysia and Singapore.
Meanwhile, the revenue and operating profit from the automotive segment increased by 35.9 per cent to RM2.12 billion million and 37.1 per cent to RM194.5 million, respectively.
For the retail operations in Malaysia, revenue increased by RM138.9 million while recording lower operating profit by RM1.2 million attributed to higher number of cars sold by 14.3 per cent spurred by high demand for Civic, City, CR-V and HR-V models as well as the newly launched model WR-V in the second half of 2023.
“The decrease in operating profit is due mainly from intense competition in the industry which has impacted gross profit as well as rising operational costs,” it said.
Furthermore, it said the healthcare segment’s revenue increased to RM104.7 million (YTD FY2023: RM85.7 million) and operating profit increased to RM18.9 million (YTD FY2023: RM10.7 million) attributed to improvement in gross profit margin from higher operating theatre cases despite lower number of patients by 0.8 per cent.
On prospects, Oriental Holdings said it will continue to demonstrate resilience by placing emphasis on improving its efficiency and look forward to seek business opportunities to add synergy to existing business.
It said the automotive segment will continue to contribute to the group’s performance under competitive market conditions with strong and aggressive promotional campaigns by the industry players.
The automotive industry is subject to rapid changes driven by technological advancements, regulatory shifts, market demand, interest rates and global events.
“Management will continue to stay well informed as the automotive industry navigates the uncertainties that lie ahead in 2025,” it said.
For the plantation segment’s management will take necessary steps to ensure that all estates and mills remain efficient, cost effective and competitive.
The forex exposure of the borrowings will be closely monitored and managed, it added.
-- BERNAMA
