Bermaz Auto Berhad reported higher revenue of RM623.1 million as compared to RM598 million in the corresponding quarter of the previous year. The 4.2% increase was mainly due to the change in sales mix from the group’s Mazda, Peugeot and Kia operations. The increase resulted in the group pre-tax profit also improving to RM55 million.
The jump was largely due to positive contribution from the Kia operations where the sales of the Kia Carnival was well received by the market compared to a lower pre-tax profit of RM42.2 million in the corresponding period of last financial year, which was negatively impacted by higher costs incurred from promotional campaigns such as the “6-year free warranty and free maintenance to clear the inventory post MCO 1.0.
For the 3 quarters, total revenue came in lower at RM1.43 billion as compared to RM1.65 billion in the previous year’s corresponding period, the 13.3% drop was largely due to lower sales volume from the domestic operations, especially during the first financial quarter as a result of the lockdown in most states. Bermaz adds although unit sales from domestic operations in the second and third quarters were also impacted, the sales however improved in line with the gradual easing of the restrictive control measures as the country moved from Phase 1 to Phase 4 of the NRP.
The Group’s pre-tax profit improved by RM13.9 million or 15.6% to RM103.1 million despite the lower revenue, largely due to higher profit contribution from the domestic Mazda operations, and higher profit contribution from its associated company, Mazda Malaysia Sdn Bhd (“MMSB”).
In view of the financial performance, the Board has approved and declared a third interim dividend of 2.25 sen single-tier dividend per share in respect of the financial year ending 30 April 2022.
Taking into consideration of headwinds expected for 2022, Bermaz is cautious and expects the automotive sector to remain challenging. The launches of new and/or new facelift models of the existing marques – Mazda, Peugeot and Kia – are still very much dependent on the market sentiments and economic conditions then. Premised on the foregoing and that the current sales tax exemptions will continue till June 2022.
