Bermaz Auto posts RM22m net profit in second quarter

PETALING JAYA: Bermaz Auto Bhd’s (BAuto) earnings fell 27.5% to RM22.2 million for the second quarter ended Oct 31, 2017, from RM30.6 million in the previous corresponding quarter.
The group said in a statement, the lower profit was primarily due to lower sales from the domestic market, tight profit margin, slight decrease in margin due to the weak Peso in the Philippines operations and losses incurred by associate company Mazda Malaysia Sdn Bhd due to lower production volume prior to the launch of the new CX-5.
Revenue for the quarter fell slightly by 0.3% to RM471.7 million, compared with RM473.2 million in the same period last year.
The board has recommended a second interim dividend of 1.60 sen single-tier dividend per share for the financial period ended Oct 31, 2017, to be payable on Jan 26, 2018.
For the six months period, BAuto’s net profit dropped 40.9% to RM42.4 million, against RM71.7 million a year ago, while revenue declined 10.7% to RM862.9 million from RM966.8 million previously.
Commenting on its prospects, BAuto said the market trading conditions remain challenging with a competitive trading environment and weak consumer sentiment as a result of uncertainties in the local and global economy.
“Although the group’s sales volume deteriorated in the first ten months of calendar year 2017 as compared to the corresponding period in 2016, the management will continue to remain disciplined and focus on driving sales at full selling price with value offerings as this will, in the longer term, augur well for the Mazda brand image and popularity.”
However, the group said it is cautious with the potential impact of the new excise duty expected to be introduced early next year and have taken measures in stocking up purchases of the latest CX-5 and CX-9 models from Mazda Japan.
Going forward, the group expects its performance in the second half of the financial year to improve, in view of the new launches for the CX-5 and CX-9.
BAuto shares gained 6 sen or 2.87% to RM2.15 last Friday with some 3.35 million shares done.