PETALING JAYA: Bermaz Auto Bhd (BAuto) reported lower revenue and profit before tax of RM846.2 million and RM97.8 million respectively for the first quarter ended July 31, 2024 (Q1’25) compared to RM1.09 billion and RM140.7 million, respectively, in the preceding year’s corresponding quarter.
Group revenue decreased by RM243.1 million (22.3%) mainly attributable to lower sales volume from its domestic operations which was impacted by the launching of several new and facelift models by other marque distributors. Group revenue in respect of preceding year corresponding quarter was also higher mainly attributable to fulfilment of Mazda3 backorders for domestic market.
In line with the lower revenue, group profit before tax recorded a decrease of RM42.9 million (30.5%) compared to the preceding year’s corresponding quarter.
BAuto has accounted for the expense relating to its employees’ share scheme amounting to RM2 million in the quarter under review compared to RM100,000 in the previous corresponding period.
The board has approved and declared a first interim dividend of 3.5 sen single-tier dividend per share in respect of financial year ending April 30, 2025 (preceding year’s corres-ponding quarter ended July 31, 2023: 5 sen single-tier dividend per share). The entitlement date is Oct 18 and payment is on Nov 6.
In its review, BAuto noted that the Malaysian economy registered growth of 5.9% in the second quarter of 2024 (Q1’24: 4.2%) driven by stronger domestic spending demand and further expansion in exports. Growth in the second half of 2024 is expected to be driven by domestic spending with continued support from external demand.
Total industry volume (TIV) in July 2024 of 71,730 units was 23.6% higher than in June 2024 (58,046 units) due to longer working month and the launch of new models from marques such as Mercedes-Benz, Smart, MINI, Great Wall Motor and Jaecoo. Cumulative TIV as of end July 2024 was 462,088 units, an increase of 7.2% (31,122 units) compared to the 430,966 units in the same period of last year.
The National Economic and Development Authority of the Philippines reported in August that the country’s gross domestic product (GDP) registered a higher growth rate of 6.3% in the second quarter of 2024 (Q1’24: 5.8%). The Philippine economic outlook for 2024 is expected to remain positive with a GDP growth rate of between 6% and 7%.
Inflationary pressures, ongoing uncertainties in geopolitical conflicts and weaker global growth will have an adverse impact on the overall Malaysian economy. Vehicle sales in the country are impacted by the influx of Chinese-made vehicles. The launching of new and/or new facelift models of the group’s existing and new vehicle marques are dependent on the market sentiments and economic conditions then.
Premised on the above, the board anticipates the performance of the group to be challenging for the financial year ending April 30, 2025.
