PETALING JAYA: Bermaz Auto Bhd
(BAuto) expects the performance of the group for the financial year ending April 30, 2026 (FY26) to remain challenging.
In a filing with Bursa Malaysia, the company said inflationary pressures, ongoing uncertainties in geopolitical conflicts and weaker global growth are expected to impact the overall Malaysian economy.
For its first quarter ended July 31, 2025, BAuto’s net profit plunged to RM8.28mil from RM70.22mil in the previous corresponding period, while revenue dropped to RM491.28mil from RM846.18mil a year earlier.
BAuto said group revenue declined by RM354.9mil (down 41.9%) largely due to lower sales volume in the domestic operations for certain Mazda and Kia vehicles, which are nearing the end of their product life cycles and aggravated by the highly competitive market conditions such as the influx of Chinese-made vehicles with their low pricing strategy.
The current quarter under review includes revenue contributions from its XPeng domestic operations which commenced in the second quarter of financial year 2025 (namely, in August 2024).
BAuto added that profit before tax declined by RM78.8mil (down 80.6%) as compared to the preceding year corresponding quarter, largely due to lower sales volume
“In addition, the group recorded share of losses from all of its domestic associated companies in the current quarter, which were also impacted by lower sales volume, as compared to share of profits in the preceding year corresponding quarter.”
The group added that it had also accounted for the expense relating to its employees’ share scheme amounting to RM1.2mil in the quarter under review as compared to RM2mil in the preceding year corresponding quarter.
BAuto said new generation models would only be available in two years.
“As an interim measure, the group had on Sept 3, 2025 launched two new Mazda models for the domestic market namely, the Mazda CX-60 and Mazda CX-80 PHEV.
“These models were well received by consumers, with the positive bookings and sales registered during the pre and post launching.
“The group is also receiving strong bookings for its Mazda3 1.5L model which is targeted to be available by end-October 2025,” it said.
BAuto declared a single tier first interim dividend of 0.75 sen per share, to be paid on Nov 5.
Citing the Malaysian Automotive Association, BAuto noted that the total industry volume (TIV) in July of 70,057 units was 27.7% higher (15,194 units) than in June (54,863 units) largely due to a full working month of 23 days in July and low production base in June due to the Hari Raya Haji holidays.
“The cumulative TIV as of end-July of 443,777 units was 4.6% lower (21,175 units) compared with the same period last year of 464,952 units.”
In the Philippines, BAuto said the Department of Finance had reported last month that the country’s gross domestic product (GDP) registered a growth rate of 5.5% for the second quarter of calendar year 2025
“The Philippines economic outlook for 2025 is expected to remain positive with a GDP growth rate of between 5.5% and 6.5%,” it said.
