KUALA LUMPUR: Bermaz Auto Bhd (BAuto) navigated a softer start to its financial year as it posted revenue of RM491.3 million and profit before tax of RM18.9 million for the first quarter ended July 31, 2025 (FY26).
This compares to RM846.2 million and RM97.8 million, respectively, in the same period last year, reflecting a transitional phase for several of its key models.
The decline was primarily attributed to lower sales volume in domestic operations for certain Mazda and Kia vehicles approaching the end of their product lifecycles, alongside intensified competition from new market entrants.
Despite this, the group benefited from initial contributions from its XPeng domestic operations, which began in the second quarter of FY25 (August 2024).
While profit before tax softened in line with sales, the group also recognised a lower expense from its Employees’ Share Scheme of RM1.2 million in Q1, compared to RM2.0 million in the corresponding quarter last year.
Reflecting confidence in its long-term prospects, the board declared a first interim dividend of 0.75 sen single-tier per share for the financial year ending April 30, 2026, payable on November 5, 2025.
On the market and economic backdrop, BAuto noted that Malaysia’s economy grew by 4.4% in Q2 2025, underpinned by robust domestic demand.
However, industry dynamics remain fluid as trade tariff negotiations and geopolitical uncertainties continue to shape the external environment.
In July 2025, total industry volume (TIV) reached 70,057 units—27.7% higher than June—boosted by a longer working month.
Year-to-date, cumulative TIV stood at 443,777 units, marginally 4.6% lower than the same period last year.
Regionally, the Philippines maintained resilient growth, posting a GDP expansion of 5.5% in Q2 2025, with full-year growth expected between 5.5% and 6.5%.
Despite lifecycle headwinds on certain models, BAuto is proactively refreshing its line-up.
On September 3, 2025, the group introduced two new flagship models—the Mazda CX-60 and Mazda CX-80 PHEV—for the Malaysian market.
Both models have been met with encouraging consumer response, with strong bookings and early sales momentum recorded pre- and post-launch.
In addition, the group is seeing healthy demand for the upcoming Mazda3 1.5L model, targeted for release by end-October 2025.
These product introductions are expected to provide positive contributions to performance in subsequent quarters, ahead of a broader generational refresh in the coming years.
While recognising that FY26 will remain a challenging year given competitive pricing pressures and macro uncertainties, BAuto remains confident in its product strategy and market positioning.
The group believes that the successful introduction of its latest models, coupled with a supportive domestic economy and resilient regional markets, will help underpin a gradual recovery in performance.
