KUALA LUMPUR (March 13): Bermaz Auto Bhd, which mainly assembles Mazda-branded vehicles, said on Wednesday its net profit fell 19.23% in the third quarter from a year earlier dragged by lower sales.

Net profit for the three months ended Jan 31, 2024 (3QFY2024) fell to RM70.5 million or 6.04 sen per share compared with RM87.29 million or 7.5 sen per share in the corresponding quarter a year ago, Bermaz Auto said in an exchange filing. Revenue for the quarter dropped 8.14% year-on-year to RM896.51 million, from RM975.97 million.

The company blamed lower sales volume and a change in sales mix from domestic operations of its Mazda marque. Nevertheless, Bermaz expects its performance to remain “positive” for the financial year ending April 30, 2024 (FY2024).

Bermaz declared a single-tier third interim dividend of 4.25 sen per share, payable on May 3, 2024. This brings the year-to-date dividend to 14.25 sen per share, up from 11 sen per share paid a year before.

For its first nine months (9MFY2024), net profit rose 28.41% to RM260.82 million from RM203.12 million while revenue climbed 20.88% to RM3 billion from RM2.48 billion, thanks to higher sales volume from the domestic operations.

Broadly, Bermaz said the automotive sector is expected to continue to register slower growth, flagging inflationary pressures, uncertainties in geopolitical conflicts and weaker global growth which may hurt Malaysia’s economy.

New models or facelift launches are “still very much dependent on the market sentiments and economic conditions then,” Bermaz added.

Bermaz shares settled unchanged at RM2.48, giving the group a market capitalisation of RM2.9 billion. Year to date, the counter has appreciated by 16%.