How did Petronas Dagangan achieve a 23% profit increase despite lower prices?

Question

Accepted Answer

Petronas Dagangan Achieved 23% Profit Increase Through Higher Sales Volume and Strategic Investments

Petronas Dagangan Bhd (PDB) recorded a 23 per cent increase in profit after tax, reaching nearly RM1 billion in 2023, despite facing lower average sales prices. This significant profit growth was primarily driven by a substantial rise in sales volume, a two per cent overall revenue increase, and strategic investments in both physical and digital customer experience enhancements. The company's success is also attributed to the strong performance across its various business segments, including retail, commercial, LPG, and lubricants, alongside the notable expansion of its digital platform, Setel.
Record Fuel Sales Volume Drove Revenue Growth

PDB achieved a record sales volume exceeding 16 billion litres of fuel in 2023, marking an eight per cent year-on-year increase. This surge in volume compensated for the lower average sales prices, enabling a two per cent rise in overall revenue to RM37.55 billion. The company's retail business, in particular, experienced record sales volume, a success factor attributed to superior customer service, premium product offerings, and the convenience of digital solutions like the cardless Mesra Rewards loyalty programme.
Diverse Business Segments Contributed to Profitability

Beyond fuel sales, PDB's other business segments demonstrated robust performance. The commercial business experienced strong growth, fuelled by renewed demand within the aviation and upstream sectors. Furthermore, the liquified petroleum gas (LPG) business outpaced industry growth with a six per cent increase, solidifying its market leadership. The lubricants division also reported remarkable results, with a nine per cent sales increase, bolstered by the strong performance of its key power brands: Syntium, Sprinta, and Urania.
Digital Transformation and Enhanced Customer Experience Were Key

Responding to consumer demand for simpler and better ways of engaging with services, PDB made significant investments in both physical and digital solutions. The company highlighted its commitment to delivering a superior customer experience as a core strategy. The digital platform Setel saw substantial growth, with its gross merchandise value (GMV) surging from RM1.8 billion to RM2.5 billion within the same financial year. PDB's inclusion as an e-wallet service provider for initiatives such as eBeliaRahmah and eMadani further expanded its user base and digital engagement.

Reading history

Hide →

This history is cleared when the page is closed.

How did Petronas Dagangan achieve a 23% profit increase despite lower prices?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends