Bermaz Auto Berhad reported higher group revenue of RM897.4 million as compared to RM641.2 million in the corresponding quarter of the previous year. The 40.0% increase was mainly due to the higher overall sales volume from the Group’s Mazda, Peugeot and Kia operations as consumers rushed to register vehicles before the expiration of the sales tax
exemption incentives in June 2022.
In line with the increase in revenue, the Group’s pre-tax profit has improved by RM32 million or 38.3% largely due to the higher profit contribution from Mazda’s domestic operations, positive contribution from Peugeot’s operations, and partly offset by lower profit contribution from its associated company, Mazda Malaysia Sdn Bhd.
Improved margin from sales mix of completely knocked-down (“CKD”) models, strengthening of the MYR against the JPY, and reversal of provisions no longer required had also contributed to the increase in pre-tax profit.
The Group registered a marginally higher revenue of RM2.33 billion as compared to RM2.29 billion in the preceding year’s corresponding period. The Group’s revenue improved marginally by RM37.2 million or 1.6% largely due to sales contribution from its newly acquired Peugeot and Kia marques and partly offset by lower sales volume from its domestic Mazda operations, which was adversely impacted in the first financial quarter by the lockdown under Phase 1.
Despite a marginal increase in revenue, the Group’s pre-tax profit had improved by RM49.6 million or 29.4% mainly due to the higher profit contributions from its operations as a result of better margin from the sales mix of CKD vehicles, the strengthening of the MYR against the JPY and reversal of provisions no longer required. In addition, Mazda operations in the Philippines contributed positively in the current financial year as compared to the preceding financial year.
In view of the better performance, the Board approved and declared a fourth interim dividend of 2.00 sen single-tier dividend per share and a special dividend of 2.50 sen single-tier dividend per share.
On future outlook, Bermaz remains cautious due to the ongoing shortage of chips and components and shipment delays, and the continued lockdowns in China due to the COVID-19 pandemic which will continue to pose challenges for the automotive sector and will impact the recovery of vehicle sales. It adds that although the current sales tax exemption incentives had kept vehicle prices relatively low in a period of rising input costs, it may however not be sufficient to boost sales as most automotive players are facing difficulties in fulfilling backorders due to the ongoing shortage of chips and components.
