Section 3 UEM Edgenta Berhad FROM OUR LEADERSHIP 42 FINANCIAL PERFORMANCE BY SEGMENT The Healthcare Support division witnessed an increase in revenue of RM40.2 million (2.7% Y-o-Y) to RM1,529.2 million, contributed mainly by new and renewed projects in Singapore and Taiwan, coupled with the strengthening of the Singapore Dollar against the Malaysian Ringgit. However, this division’s growth faced challenges from increased operating costs, including minimum wage hikes, one-off machinery repair expenses and higher manpower costs across Malaysia, Singapore and Taiwan. Furthermore, the discontinuation of COVID-19 related business, such as Field Hybrid ICUs and RFID e-Bracelets, led to a decrease of RM25.8 million (-29.2% Y-o-Y) in Normalised Profit Before Tax and Zakat (“Normalised PBT”) to RM62.8 million. The Infrastructure Services division of UEM Edgenta saw significant revenue growth, with revenue increasing by RM226.7 million (29.4% Y-o-Y) to RM998.2 million. This surge was primarily fuelled by increased work volumes for our core client, PLUS Malaysia Berhad and new contracts for state and rural roads in Selangor, Johor and Sarawak. Accordingly, normalised PBT also rose by RM2.7 million (4.2% Y-o-Y) to RM68.0 million. However, this positive performance was partially offset by rising costs for materials and sub-contractors. The Property & Facility Solutions division experienced a growth in revenue by RM71.4 million (43.0% Y-o-Y) to RM237.3 million, attributed to the successful renewal and new contracts beyond existing clients in the UAE, along with additional variation order works in Malaysia. However, despite the revenue increase, there was a decrease in PBT by RM1.3 million (-17.8% Y-o-Y) to RM6.4 million. This decline can be primarily attributed to increased costs associated with clearing backlog work orders, higher operating costs and the impact of escalating labour and subcontractor costs. In contrast, the Asset Consultancy division faced a decline in revenue of RM10.4 million (-10.4% Y-o-Y) to RM89.4 million primarily due to reduced project contributions, particularly in Sarawak. Despite this revenue dip, the division achieved a notable 29.2% Y-o-Y increase in normalised PBT to RM2.3 million. This growth was propelled by effective cost optimisation measures and cost savings initiatives. FINANCIAL REVIEW Healthcare Support and Infrastructure Services segments continue to be the primary contributors to the Group’s revenue and profit. Both divisions recorded growth in revenue, but profitability was adversely affected by the escalating operating costs. Revenue RM1,529.2 million Normalised PBT RM62.8 million HEALTHCARE SUPPORT (2022: RM1,489.0 million) (2022: RM88.6 million) Normalised PBT RM68.0 million Revenue RM998.2 million INFRASTRUCTURE SERVICES (2022: RM771.5 million) (2022: RM65.3 million) Normalised PBT RM6.4 million Revenue RM237.3 million PROPERTY & FACILITY SOLUTIONS (2022: RM165.9 million) (2022: RM7.7 million) Normalised PBT RM2.3 million Revenue RM89.4 million ASSET CONSULTANCY (2022: RM99.8 million) (2022: RM1.8 million) * Normalised PBT excluding: 2022: Staff rationalisation costs (RM12.2 million) and inventories written-off (RM12.8 million)
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