ARB’s FY21 net profit surges by 71 per cent to RM74 million

KUCHING: ARB Bhd (ARB) recorded its third consecutive year of growth in its financial year ended December 31, 2021 (FY21) with a new milestone on its revenue, led by strong momentum growth in both its Enterprise Resource Planning (ERP) and Internet of Things (IoT) segments.

The group’s profit after tax (PAT) surged by 70.8 per cent to RM74.2 million in FY21 as compared to RM43.5 million a year ago, mainly due to the contribution from the other operating income from ERP and IoT segments.

Meanwhile, ARB’s revenue hits a new milestone as it surpassed the RM300 million mark for FY21 with RM309.2 million, representing an increase of 41 per cent from RM219.5 million recorded in FY20.

“This is a new milestone for us as the group’s revenue for FY21 surpassed the RM300 million mark,” ARB executive director Datuk Seri Larry Liew Kok Leong said.

“Our revenue is now above the RM300 million level, and it gives us a comfortable size to scale our business and expand our earnings margin.

“In addition, one of the segments in the group such as cloud-based revenue services can create a sustainable recurring income to the group, which provides us with a good base to grow from here.”

ARB has continued to maintain a strong momentum growth in the fourth quarter of its financial year ended December 31, 2021 (4QFY21) as revenue jumped by 87 per cent to RM135.6 million, mainly due to revenue growth in the ERP and IoT segment.

However, ARB’s PBT for the quarter was down by 20 per cent to RM16.4 million compared to RM20.6 million recorded in 4QFY20 amidst the increase of amortisation of intangible assets of RM3.3 million and depreciation of property, plant and equipment of RM2.6 million. There’s no other income was recognised in this quarter.

Looking forward, the group is confident that the strong momentum growth in its ERP and IoT segments will continue to be the key catalyst for its growth. The group will expect to receive a higher revenue contribution from its IoT division to provide Hydroponics IoT Solutions.

With the available opportunities in hydroponics, the group aims at capitalising on the rising adoption of smart hydroponics techniques in commercial farming by expanding its IoT business into the provision of Hydroponics IoT solutions.

“We are excited with the growth prospect beyond FY22 led by the strong momentum growth seen in our ERP and IoT business.

“We believe that ARB is in a good position to expand its business regionally as the Malaysian ERP market is expected to grow at a compound annual growth rate (CAGR) of 11.4 per cent over the next five years, while the IoT market will grow at a CAGR of 24.7 per cent over the next five years.”