UEM EDGENTA Q3 EARNINGS HALVED TO RM4.59 MLN AMID INFLATIONARY PRESSURE, SUPPLY CHAIN DISRUPTION

KUALA LUMPUR, Nov 29 (Bernama) -- UEM Edgenta Bhd reported a net profit of RM4.59 million for the third quarter (Q3) ended Sept 30, 2022, down by half from the RM9.14 million achieved a year earlier.

It posted a weaker performance as its asset management segment’s profit before tax fell 93 per cent to RM1.99 million, mainly contributed by a one-off provision of impairment on inventories amounted to RM12.7 million, lower revenue and margin compression.

UEM Edgenta, which is also involved in infrastructure solutions, said group revenue, however, increased 13 per cent to RM646.21 million versus RM571.87 million in last year’s corresponding quarter.

In a filing with Bursa Malaysia today, the company said the cumulative nine-month net profit rose to RM24.86 million from RM21.97 million in the same period last year.

Revenue increased 13.7 per cent year-on-year (y-o-y) to RM1.81 billion from RM1.59 billion previously.

UEM Edgenta said its balance sheet remained healthy with a low gearing ratio of 0.3 times, while its order book remained strong at RM10.1 billion.

"After a strong first half in 2022, growth momentum for Q3 was moderated by the intensifying inflationary pressure and supply chain disruption," it said.

UEM Edgenta added that its infrastructure solutions business saw growth being driven by higher maintenance works undertaken following the lifting of the Movement Control Order by the government on April 1 this year.

It said growth in revenue y-o-y was mainly driven by higher revenue generated from the healthcare support services division through the expansion into integrated healthcare solutions offerings in Malaysia as well as extending services to the hospitality and semiconductor sectors in Singapore and Taiwan

It explained that its international diversification strategy resulted in 70 per cent of the RM972 million new contracts secured during the first nine months of 2022 coming from overseas markets.

UEM Edgenta said the reopening of international borders in April this year and the full resumption of economic activities also paved the way towards positive growth momentum, although this was tempered by macroeconomic and inflationary headwinds which contributed to costs escalation globally.

Managing director and chief executive officer Syahrunizam Samsudin said the company continued to deploy short to medium-term measures to navigate through volatile market conditions while maintaining quality service delivery amid the current challenging business environment.

Stressing that the company had made good progress with its strategic portfolio repositioning, he said its recent divestment of Faber Sindoori Management Services Pte Ltd had allowed the group to reinvest into new growth markets/products and technology.

He added that the investment in MEEM, a facilities management company in Saudi Arabia, would also accelerate its expansion into integrated facilities management in that country and elsewhere in the region.

-- BERNAMA