Bermaz Auto’s 1Q18 profit more than doubles

by TMR /pic by MUHD AMIN NAHARUL

BERMAZ Auto Bhd’s net profit for the first quarter ended July 31, 2018 (1Q18), came in higher at RM50.27 million compared to RM20.27 million in 1Q17, thanks to higher demand on the CX-5 due to the absence of the Goods and Services Tax. Earnings per share for the quarter stood at 4.33 sen versus 1.74 sen per share in 1Q17.

In a filing to the local bourse yesterday, Bermaz’s revenue for the period grew 24.1% year-on-year (YoY) to RM485.4 million and the group has recommended a first interim dividend of 2.5 sen single-tier dividend per share in respect of the financial year ending April 31, 2019, to be paid on Oct 26, 2018.

In a statement yesterday, the group said its pretax profit increased substantially by 112% to RM67.2 million from RM31.7 million, largely due to higher revenue and improvement in gross profit margin from the domestic operations, and higher share of profit contribution from its associate company, Mazda Malaysia Sdn Bhd (MMSB).

The improvement in gross profit margin was mainly due to favourable sales mix and a stronger ringgit against the Japanese yen, while the

higher share of profit contribution from MMSB was mainly due to the increase in production volume for the new CX-5 model to cater for both domestic and export markets.

On prospects, with the implementation of the Sales and Services Tax (SST), the group is absorbing SST for customers who have placed their bookings for Mazda cars prior to Sept 1, 2018, for which the delivery of the cars will take place after the said date.

This is to build customer loyalty and is expected to increase costs and reduce the group’s profitability in the coming quarter. — TMR