BAuto earnings soar on higher Mazda CX-5 sales

Better results also due to contribution from associate company

PETALING JAYA: Bermaz Auto Bhd (BAuto) registered a 61.2% growth in net profit for the third quarter ended Jan 31, 2018, as compared to the corresponding quarter last year.

This was achieved on the back of increased sales volume from the new Mazda CX-5 model and a higher share of profit contribution from associate company Mazda Malaysia Sdn Bhd (MMSB).

BAuto reported a 65.2% year-on-year increase in revenue to RM559.4mil during the quarter, mainly due to improvement in sales volume in both the domestic and the Philippines operations arising from the well-received response to the new CX-5 and CX-9 models launched in October and November 2017, respectively.

This brings the group’s nine-month cumulative revenue and net profit to RM1.42bil and RM82.88mil, respectively.

BAuto is the distributor of Mazda vehicles and spare parts in Malaysia.

It distributes a selected range of Mazda vehicles and spare parts in Malaysia and the Philippines.

In a statement, BAuto said the increase in demand and export commencement of the new CX-5 model to Thailand, Indonesia, the Philippines and Cambodia is expected to drive up profitability of MMSB.

“The group made a comeback during the third quarter of the financial year, benefitting from the launch of the new CX-5 model in October 2017 in terms of market share as well as profitability.

“The favourable exchange movement of the ringgit against the Japanese yen in recent months is expected to reduce cost, and hence, will likely improve the group’s profitability, going forward,” said BAuto.

Over in the Philippines, the new excise duty brought by the Tax Reform for Acceleration and Inclusion Law effective Jan 1, 2018 is expected to hamper the growth of the automotive industry, but Bermaz Auto Philippines Inc (BAP) is still positive for the year, as there will be new model introductions which are expected to contribute to a reasonable growth rate.

BAP is seeking to increase its revenue and profitability by introducing a new range of Mazda models, as well as increasing its number of dealerships from 19 in 2017 to 21 in 2018.

The board of BAuto has recommended a third interim single-tier dividend of 2.30 sen per share, in respect of the financial period ended Jan 31, 2018 to be payable on April 26, 2018. The entitlement date has been fixed on April 10, 2018.

Total dividends declared for the financial period ended Jan 31, 2018 amounted to 5.40 sen per share.