- Group revenue increased by 43% to RM15,814 million.
- All three core business segments achieved higher revenue and profit before taxation and zakat.
- Gearing ratio improved to 0.22 times from 0.40 times year-on-year.
- Net cash position strengthened from RM811 million to RM1,452 million over 12 months.
KUALA LUMPUR, 27 February 2023 – UMW Holdings Berhad’s (“UMW”) Group revenue for the fourth quarter ended 31 December 2022 (“Q4 2022”) increased by 20% to RM4,375.4 million, supported by the improved contribution from all three core business segments. Consequently, the Group registered profit after taxation and minority interests (“PATAMI”) of RM106.0 million for Q4 2022. For the financial year ended 31 December 2022 (“FY2022”), the Group’s revenue increased by 43% to RM15,814.4 million compared with the RM11,060.8 million registered in the financial year 2021 (“FY2021”), while PATAMI surged by 55% to RM415.0 million from the RM268.2 million registered a year ago, following strong recovery of the Malaysian and regional economies.
In view of the improved performance, UMW has declared a final dividend of 11.2 sen per share amounting to RM130.8 million for the financial year ended 31 December 2022, to be paid on 12 May 2023. Collectively, with the earlier interim dividend of 3.0 sen per share, the total dividend in respect of FY2022 is 14.2 sen per share amounting to RM165.8 million or equivalent to a 40% dividend payout ratio.
The Automotive segment’s revenue for FY2022 rose by 47% to RM13,310.0 million compared with the RM9,030.3 million registered in FY2021, 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 increased revenue and the higher share of profit from an associated company, the segment’s profit before taxation and zakat (“PBTZ”) surged by 63% to RM774.9 million from the RM476.7 million registered in the previous year. The Group will continue to take the necessary measures to mitigate the projected slowdown through increased production to fulfil its outstanding bookings which will contribute to its growth in 2023. Moreover, the Group believes that the exciting new and facelifted models will continue to entice and sustain buying interest among consumers. The Group is cautiously optimistic that the automotive industry will continue to perform well in 2023.
The Equipment segment’s revenue increased by 16% to RM1,528.0 million in FY2022 compared with the RM1,313.4 million registered in the corresponding year, mainly due to the growing demand for the segment’s products and services in its local and overseas markets. In line with the higher revenue, the segment’s PBTZ increased by 43% to RM152.8 million in FY2022 compared with the RM107.0 million registered in FY2021. Moving forward, the reopening of the economy is expected to sustain demand for equipment in the countries that it operates in. The Industrial Equipment sub-segment will continue to strive for excellence and leverage its leading position to explore new opportunities in automation and other adjacencies. Concurrently, the Heavy Equipment sub-segment will continue to leverage on the improving construction industry as well as higher commodity prices.
Manufacturing & Engineering (“M&E”) segment
For FY2022, the segment’s revenue increased by 36% to RM984.2 million compared with the RM726.3 million registered in the previous year due to the higher contribution from all sub-segments. Meanwhile, the segment’s PBTZ increased to RM66.3 million in FY2022 from RM22.2 million recorded in FY2021. Both the Auto Components and Lubricants sub-segments will continue to leverage on the improving demand for vehicles and spare parts. This is underpinned by the robust demand from original equipment (“OE”) market as well as the replacement equipment (“RE”) market to drive the growth for the segment in 2023. The Aerospace sub-segment is expected to benefit from the reopening of international borders and increase in air travel which is expected to reach the pre-pandemic level by this year. As such, the additional orders for new aircraft from the airlines combined with the backlog orders will lead to a higher demand for fan cases in 2023.
UMW Holdings Berhad President and Group CEO, Dato’ Ahmad Fuaad Kenali said, “We are heartened by the improved results achieved by the Group for the financial year 2022 following the reopening of the economy. After an invigorating expansion of GDP by 8.7% in 2022, Malaysia’s GDP growth is projected to taper to 4% in 2023, in line with the anticipated slowdown in the global economy. Nevertheless, the Group is cautiously optimistic of a sustained performance by its core business segments based on the encouraging order book and improving demand for its products and services. The Group will continue to focus on strengthening its core businesses through operational efficiency and cost management initiatives to improve its business resilience amidst the challenging business environment in 2023. The Group expects to deliver satisfactory performance for 2023.”