KUALA LUMPUR, May 25 (Bernama) — UMW Holdings Berhad’s (“Group”) profit after taxation and minority interests (“PATAMI”) surged by 26.8% to RM101.2 million for the first quarter ended 31 March 2022 (“Q1 2022”), compared with the RM79.8 million registered in the corresponding quarter ended 31 March 2021 (“corresponding quarter”), mainly attributed to the increase in revenue of 23.6% to RM3,650.8 million. The improved performance is attributed to the strong contribution from its Automotive and Equipment segments as demand improved following the economic recovery under the National Recovery Plan (“NRP”).
Automotive segment
The Automotive segment’s revenue for Q1 2022 grew by 28.1% to RM3,070.2 million compared with the corresponding quarter, supported by the higher number of vehicles sold which was driven by the sales tax exemption as well as the introduction of new models. In line with the higher revenue and higher share of profit from an associated company, the segment’s profit before taxation and zakat (“PBTZ”) soared by 41.4% to RM205.8 million. As Malaysia transitions to the endemic phase of Covid-19, demand for vehicles is expected to improve progressively. The Malaysian Automotive Association (“MAA”) projected the total industry volume (“TIV”) to increase by 18% to 600,000 units in 2022 mainly driven by the extension of sales tax exemption until 30 June 2022 and the improving consumer confidence. The introduction of all-new and facelift models, coupled with sales promotion campaigns, are expected to drive sales and contribute positively to the Group in 2022.
