KUALA LUMPUR, Aug 27 (Bernama) — The prolonged Covid-19 pandemic had a significant impact on UMW Holdings Berhad’s financial results for the first six months of 2020. The Group’s revenue reduced by 36.6% to RM3,648.9 million. The Group was also impacted by share of losses of RM44.1 million from one of its associate companies which involves in leasing and hire purchase financing business due to the present value impact of the loan moratorium and unfavourable mark-to-market valuation of interest rate swaps. Accordingly, the Group recorded a lower profit before taxation (PBT) of RM4.2 million for the first six months of 2020 compared to a PBT of RM290.9 million a year ago. Consequently, loss attributable to owners of the company for the first half of 2020 was RM34.1 million compared to a profit of RM143.7 million registered for the same period of 2019. Excluding the substantial loss made by its associate company, the Group reported a profit attributable to owners of the company of RM10.0 million for the first half of 2020.
UMW Holdings Berhad Acting President and Group CEO, Azmin Che Yusoff said, “The Group was severely impacted by disruptions caused by the implementation of MCO/lockdowns to combat the Covid-19 pandemic. All three core business segments recorded lower revenue in the first six months of 2020. On a more positive note, sales are gradually improving since the relaxation of the MCO/lockdown, spearheaded by our automotive segment. Both UMW Toyota Motor (UMWT) and Perodua staged a strong upturn in July following disruptions to sales earlier this year. As the economy progressively recovers and demand improves, we are confident of staging a healthy recovery in the second half of the year.”