CEO Morning Brief

Bermaz Auto's 4Q Net Profit Drops 10% on Lower Revenue, Declares 11.75 Sen Dividend

Publish date: Wed, 12 Jun 2024, 10:50 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (June 11): Bermaz Auto Bhd (KL:BAUTO) said its net profit fell 10.3% to RM90.2 million for its fourth quarter ended April 30, 2024 (4QFY2024), from RM100.6 million a year ago, dragged down by lower revenue despite higher profit contribution from associated company Kia Malaysia Sdn Bhd.

Earnings per share declined to 7.73 sen from 8.63 sen, according to Bermaz Auto's exchange filing on Tuesday.

Revenue for the quarter dropped 12.6% to RM937.5 million from RM1.1 billion in 4QFY2023, mainly due to lower sales volume from the group's Mazda and Kia marque domestic operations.

The higher revenue previously was also due to a final rush by consumers to register their vehicles by March 31, 2023 to qualify for sales tax exemption incentives, the group said.

Bermaz Auto declared a fourth interim dividend of 4.75 sen per share and a special dividend of seven sen per share, totalling 11.75 sen per share, to be paid on Aug 2. This brings its total dividend for FY2024 to 26 sen per share, as against 22 sen per share in FY2023.

For the full year, Bermaz Auto's net profit rose 14.8% to RM351 million from RM305.8 million in FY2023, on the back of higher revenue. Full-year revenue increased 11% to RM3.9 billion from RM3.5 billion previously, driven by better performance from the Mazda operations in Malaysia, with the CX-30 CKD model continuing to achieve higher sales since its launch in March last year.

Looking ahead, the group anticipates a challenging performance for FY2025, as the automotive sector is expected to grow at a slower pace due to inflation, geopolitical uncertainties, and weaker global growth.

In addition, Bermaz Auto said the influx of vehicles from China has also impacted the group's sales. Consequently, the launch of new and facelifted vehicle models will depend on market sentiment and economic conditions, it said.

Shares in Bermaz Auto closed three sen, or 1.17%, lower at RM2.54, giving the group a market capitalisation of RM2.97 billion.

Source: TheEdge - 12 Jun 2024

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