BAuto Q1 pre-tax profit at RM31.7m

The Sun (Malaysia) - - SUNBIZ -

PE­TAL­ING JAYA: Ber­maz Auto Bhd’s (BAuto) pre-tax profit for the first quar­ter ended July 31, 2017 fell to RM31.7 mil­lion from RM58.6 mil­lion a year ago due to lower rev­enue.

BAuto rec­om­mends a first in­terim div­i­dend of 1.50 sen sin­gle-tier div­i­dend per share for the fi­nan­cial year end­ing April 30, 2018 payable on Oct 27, 2017. The en­ti­tle­ment date has been fixed on Oct 11, 2017.

In a fil­ing with Bursa Malaysia yes­ter­day, the group said the lower rev­enue was in line with lower sales vol­ume, com­pressed gross profit mar­gin from in­tense com­pe­ti­tion and lower profit con­tri­bu­tion from as­so­ciate com­pany Mazda Malaysia Sdn Bhd.

“The drop in profit mar­gin in the do­mes­tic mar­ket was partly caused by the Mazda CX-5 run-out pro­gramme as more sales in­cen­tives were given for this model since the pre­ced­ing quar­ter in an­tic­i­pa­tion of the new CX-5 model to be launched in Oc­to­ber this year,” it said.

It added that the lower profit con­tri­bu­tion from Mazda Malaysia was mainly due to lower unit sales and mar­gin, as the group is phas­ing out the cur­rent CX-5 model to gear up for the up­com­ing new CX-5.

Dur­ing the quar­ter, rev­enue fell 20.7% to RM391.2 mil­lion from RM493.6 mil­lion a year ago due to lower do­mes­tic sales vol­ume, par­tic­u­larly for the CX-5 run-out model and age­ing Mazda3 model which faced in­tense com­pe­ti­tion from new mod­els launched by other com­pa­ra­ble brands.

“This was par­tially mit­i­gated by the im­proved sales per­for­mance from the group’s Philip­pine op­er­a­tions,” BAuto said.

Mov­ing for­ward, the group ex­pects mar­ket trad­ing con­di­tions to re­main chal­leng­ing de­spite the mar­ginal 5% im­prove­ment in Malaysia’s to­tal in­dus­try vol­ume for the first seven months of 2017.

This is due to the com­pet­i­tive trad­ing en­vi­ron­ment and weak con­sumer sen­ti­ment as a re­sult of un­cer­tain­ties in the lo­cal and global econ­omy.

“Al­though the group’s units sales had de­te­ri­o­rated in the first seven months of the cal­en­dar year 2017 com­pared to the cor­re­spond­ing pe­riod in 2016, the group will con­tinue to re­main dis­ci­plined and fo­cus on driv­ing sales at its stan­dard sell­ing price with value of­fer­ings as this au­gurs well for the Mazda brand im­age and pop­u­lar­ity in the longer term,” it said.

It is op­ti­mistic that the new CX-5 to be launched next month will help to im­prove unit sales as well as profit con­tri­bu­tion from as­so­ci­ated com­pa­nies for the sec­ond half of the fi­nan­cial year 2018.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.