UMW Holdings Bhd profit after taxation and zakat (“PATZ”) surged by 80.6% to RM380.3 million for the fourth quarter ended 31 December 2021 (“4Q 2021”), compared with the RM210.6 million registered in the corresponding quarter ended 31 December 2020.
In a statement, it said that this was supported by the strong contribution from its Automotive and Equipment segments as demand recovered after the lifting of the Full Movement Control Order (“FMCO”).
It said that the Group’s revenue increased by 12.4% to RM3,645.1 million compared with the corresponding quarter mainly due to higher vehicle and equipment sales.
The company said that for the financial year ended 31 December 2021, the Group’s revenue increased by 15.8% to RM11,060.8 million compared with 2020. PATZ improved by 59.7% to RM515.6 million in 2021 compared with RM322.9 million in 2020 in line with the increase in revenue as well as recognition of deferred tax assets arising from approval of an incentive approved in 4Q 2021.
It said that buoyed by the higher number of vehicles sold which was driven by the sales tax exemption as well as the introduction of new models, the Automotive segment’s revenue for 4Q 2021 increased by 14.7% to RM3,061.6 million compared with the corresponding quarter.
UMW said that in line with the higher revenue and higher share of profits from an associated company, the segment’s profit before taxation and zakat (“PBTZ”) surged by 40.9% to RM269.2 million.
It said that the equipment segment’s revenue increased by 14.8% to RM365.1 million in 4Q 2021 as demand for the segment’s products and services in the local and overseas markets continues to improve following business recovery from the Covid-19 pandemic. This, in turn, resulted in the segment’s PBTZ to improve by 56.4% to RM28.9 million for the quarter.
UMW Holdings Bhd’s President and Group CEO, Dato’ Ahmad Fuaad Kenali said, “Despite the challenges confronting the Group in 2021, from the semiconductor chips shortage to disruptions caused by the Covid-19 pandemic and massive flood affecting its operations, the Group remained resilient and delivered improved results compared with 2020.
The Group expects business operations both domestically and regionally to gradually recover from 2022 onwards and will continuously assess its strategies as well as initiatives to improve its cost management and operational efficiency to enhance its resilience and to continue to deliver value to its shareholders.”
