Overall, the group anticipated its performance for the financial year ending April 30, 2025 to be challenging.
PETALING JAYA: Bermaz Auto Bhd
(BAuto) expects vehicle sales in the country to be impacted by the influx of Chinese-made vehicles.
For the first quarter ended July 31, 2024 (1Q25) the Mazda vehicle distributor’s net profit declined by 30% year-on-year (y-o-y) to RM70.2mil or an earnings per share of 6.01 sen.
This is in line with the group’s revenue which dropped by more than 20% y-o-y to RM846.2mil due to lower sales volume of its domestic operations.
In a filing with Bursa Malaysia, BAuto also stated that its higher revenue in the same corresponding quarter last year was mainly attributable to fulfilment of Mazda 3 backorders for the domestic market.
BAuto noted the launching of new or new facelift models are dependent on market sentiment and economic conditions.
The company added that inflationary pressures, ongoing geopolitical conflicts and weaker global growth would likely affect the Malaysian economy.
Overall, the group anticipated its performance for the financial year ending April 30, 2025 (FY25) to be challenging.
On a brighter note, BAuto stated the Philippines economic outlook for this year is expected to remain positive with a gross domestic product growth rate of between 6% and 7%.
The total industry volume (TIV) in July 2024 of 71,730 units was 23.6% higher (13,684 units) than in June 2024 (58,046 units) due to longer working month and the launch of several new models from 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 with the same period of last year of 430,966 units.
BAuto also approved and declared a first interim dividend of 3.5 sen single-tier dividend per share in respect of FY25 (preceding year’s corresponding quarter ended July 31, 2023: Five sen single-tier dividend per share).
The entitlement date has been fixed on Oct 18, 2024 and payable on Nov 6, 2024.
In a separate announcement, BAuto said it had entered into a conditional share subscription agreement with EP Manufacturing Bhd (EPM) to subscribe to 33.04 million new ordinary shares in the latter for RM19.8mil or 60 sen per share.
“The proposed subscription represents an opportunity for BAuto to acquire a strategic stake and participate in the future profitability of the EPM Group,” the group said.
