KUALA LUMPUR: MBM Resources Bhd
closed the year with improved earnings of RM339.06mil, as compared to RM333.39mil in the previous year, mainly owing to higher contributions from associates and a RM5.95mil one-off gain from the disposal of assets.
The group reported RM2.55bil in revenue during the year, which was an improvement over RM2.49bil in FY24.
Boosting its bottomline for the year, the group said its share of results from associates improved 5.9% year-on-year (y-o-y) to RM308.05mil, supported by strong demand for Perodua and a stronger ringgit.
However, the group said its share of results form joint ventures declined 14.6% y-o-y to RM25.28mil due to softer market demand and price reductions for customers.
The prior period also benefited from a one-off end-of-production bulk purchase by a customer in the first quarter of last year.
Meanwhile, the group's motor trading and assembly business recorded revenue growth of 1.6% to RM2.22bil. Pre-tax profit, however, declined 8.4% to RM47.7mil due mainly to intensified competition from other brands and margin compression arising from higher discounting particularly on long-running models.
The auto parts manufacturing division posted 9.5% revenue growth y-o-y to RM329mil. Pre-tax profit fell 13.2% to RM22.9mil, mainly in line with the contraction in total industry production, margin compression and the one-off settlement of claims from supplier recorded in the current year.
Moving forward, the group said it will remain vigilant amid global geopolitical developments and evolving domestic market conditions.
"The group will continue to focus on operational efficiency, disciplined cost management and strategic initiatives to
enhance value creation.
"The group’s associates are expected to continue to perform well due to strong demand from their customer segments and their superior competitive positioning in the market," it added.
