BAuto posts RM25.11m net profit in Q3

PETALING JAYA: Bermaz Auto Bhd (BAuto), formerly Berjaya Auto Bhd, saw its net profit for the third quarter ended Jan 31, 2017 fall to RM25.11 million from RM41.13 million a year ago, mainly attributable to the drop in revenue, weaker results from associated companies and higher vehicle cost with the weakening ringgit.
It reported a revenue of RM338.68 million as compared to the preceding year’s corresponding quarter’s revenue of RM522.58 million primarily due to lower sales volume recorded by the group.
The board has recommended a third interim dividend of 2.75 sen single-tier dividend per share in respect of the financial period ended Jan 31, 2017 to be payable on April 26, 2017. The entitlement date has been fixed on April 10, 2017. The total dividend declared for the financial period ended Jan 31, 2017 amounted to 8.50 sen single-tier dividend per share.
Softer consumer demand also impacted domestic sales while supply constraints on a certain Mazda model coupled with new model launches by competitors affected sales in the Philippines. This was further aggravated by intense competition in the domestic market where sales were predominantly driven by aggressive discount promotion activities by the competitors. For the nine months period, its net profit was lower at RM96.84 million compared with RM146.39 million a year ago.
The group registered a revenue of RM1.31 billion as compared to the revenue of RM1.58 billion in the previous year’s corresponding period. On future prospects, BAuto said the last quarter of the financial year is expected to remain challenging for the group. In Malaysia, sales are forecasted to remain subdued in light of the current economic condition and persistent weak ringgit.
“However, the group is optimistic that the new model launches planned for the next financial year will place the local operation in a better position and help mitigate the impact from an expected soft domestic market,” BAuto said.
The group’s penetration into the Philippine market is currently within expectation. Bermaz Auto Philippines is expected to benefit from the Philippines’ strong economic growth and buoyant demand for passenger cars.