Bermaz 3Q net profit doubles to RM87 mil, declares 4.5 sen dividend

KUALA LUMPUR (March 13): Bermaz Auto Bhd’s net profit jumped 114.09% to RM87.29 million in the third quarter ended Jan 31, 2023 (3QFY2023) from RM40.71 million a year ago on the back of higher revenue, which was slightly offset by higher income tax and foreign exchange loss.

Its earnings per share rose to 7.5 sen for 3QFY2023 from 3.5 sen in the previous corresponding quarter, the group's filing with Bursa Malaysia showed.

The group, engaged in distribution and retailing for Mazda, Peugeot and Kia in Malaysia, saw its quarterly revenue grow 56.63% to RM975.97 million in 3QFY2023 compared with RM623.13 million a year ago as the group continued to fulfill a backlog of orders received for its domestic operations prior to the expiration of the sale and service tax waiver in June 2022.

It declared a third interim dividend of 4.5 sen per share in respect of the financial year ending April 30, 2023, payable on May 5, bringing the total dividend declared for the financial period ended Jan 31, 2023 to 11 sen per share.

For the first nine months of FY2023, Bermaz’s net profit jumped 163.73% to RM201.13 million from RM77.02 million in the same period a year ago, as cumulative revenue grew 73.44% to RM2.48 billion from RM1.43 billion.

Bermaz said that its gross margin for its Mazda domestic operations in 3QFY2023 improved due to the change in the composition of sales mix and the appreciation of the ringgit against Japanese yen.

In terms of prospects, the group foresees that the automotive sector will continue to face ongoing challenges such as shortages in the supply of microchips and components, delays in the supply of vehicles, tighter financial conditions, uncertainties in geopolitical conflicts and weaker global growth.

“Barring any unforeseen circumstances, the board anticipates the performance of the group to remain positive for the final quarter of the financial year ending April 30, 2023 (FY2023),” it said.

Bermaz’s shares closed 0.47% or one sen lower at RM2.12 on Monday, valuing the group at RM2.47 billion.