Malaysian conglomerate DRB-Hicom reported a sharp decline in quarterly earnings, reflecting broader challenges across its diversified business portfolio. The company’s net profit for Q1 2025 plunged over 80% to RM17.72 million compared to the same period last year, with revenue dropping 5.1% to RM4.11 billion due to weaker performance in automotive, property, and postal operations.
The automotive division, including its majority stake in Proton Holdings, saw sales decline 6.1% to RM2.8 billion amid reduced vehicle demand. Property revenue fell sharply by 41%, while postal services recorded a marginal 0.7% dip. However, the banking and services segments provided some relief, with banking revenue rising 4.4% due to higher financing income and an expanding customer base.
DRB-Hicom attributed the downturn to multiple factors, including softening consumer demand and potential fuel subsidy adjustments in Malaysia. The company did not declare a dividend for the quarter and remains cautious about its 2025 outlook, particularly for Proton’s new model launches, which will depend on market conditions.
To navigate these challenges, the group is prioritizing digital transformation in banking and postal services while reinforcing its aerospace, defense, and property divisions. Despite current headwinds, DRB-Hicom aims to strengthen its long-term sustainability through operational efficiency and strategic adjustments.