ARBB 7181 ARB BERHAD's Q3 net profit surges to RM33.6 million, revenue stood at RM77.3mil

 ARBB 7181 ARB BERHAD's Q3 net profit surges to RM33.6 million, revenue stood at RM77.3mil

ARB Bhd posted a net profit of RM33.6 million for the third quarter (Q3) ended 30 September 2021 (FY21), an increase of 4 times from the RM8.4 million achieved in the same quarter last year.

KUALA LUMPUR: ARB Bhd posted a net profit of RM33.6 million for the third quarter (Q3) ended 30 September 2021 (FY21), an increase of 4 times from the RM8.4 million achieved in the same quarter last year.

Revenue stood at RM77.3 million, 32.6 per cent higher than the RM58.3 million registered in the corresponding period last year.

In a filing with Bursa Malaysia today, the main market-listed information technology (IT) software and platform provider said the sharp improvement in net profit was mainly due to the revenue growth in its enterprise resource planning (ERP) division.

The RM21.2 million in negative goodwill resulting from the acquisition of a subsidiary also contributed to the positive results.

Executive director Datuk Sri Larry Liew Kok Leong said ARB would maintain the growth momentum anchored by its IT segments.

"The company has taken advantage of its strong cash position to acquire the potential businesses that can contribute significantly to the earnings.

"I think the global healthcare crisis has created an unprecedented opportunity for us as the valuation of companies and assets have come down from its peak before the pandemic.

"We have benefitted from the strong cash position that enables us to obtain a bargain acquisition," Larry said in a statement today.

For its nine-month (9M) FY21, revenue and net profit stood at RM173.6 million and RM56.7 million, an increase of 18.1 per cent and 139.2 per cent, respectively

compared to the RM147.0 million and RM23.7 million registered in the same period last year.

The higher revenue was mainly due to the increased contributions from the ERP business segment of RM120.3 million compared to RM80.7 million recorded in the 9M FY21.

Larry said the company's ERP and Internet of Things (IoT) business segments would continue to drive alignment, focus, and growth and improve the efficiency for its partners.

"Our two business segments have demonstrated strong resilience in the face of adversity, and its fundamentals are strong.

"We delivered solid results in Q3 FY21 in a challenging cost and operating environment, and these results keep us on track to deliver our revenue, profit and cash generation target this year, and we are ready to drive the businesses consistently and competitively over the medium to long-term to create more values to the company," Larry said.

"ARB will continue to scout for cross-selling opportunities through its existing business networking.

"We intend to participate in these high-growth new business opportunities in Malaysia by offering our cloud solutions to prospective customers.

"We will continue to focus on executing and implementing the business strategies to ensure the company remains at the right track to deliver balanced growth and create value to the shareholders," Larry said.

https://www.nst.com.my/business/2021/11/745872/arbs-q3-net-profit-surges-rm336-million-revenue-stood-rm773mil