Bermaz Auto’s 1Q net profit jumps 5-fold

Its revenue also more than doubled due to increase in sales volume from the group’s Mazda, Peugeot and Kia operations in Malaysia

by JAY SHEILA / TMRpic

BERMAZ Auto Sdn Bhd’s net profit jumped five times and its revenue more than doubled in the first quarter ended July 31, 2022 (1Q22), compared to 1Q21, mainly due to increase in sales volume from the group’s Mazda, Peugeot and Kia operations in Malaysia.

For 1Q22, Bermaz Auto’s net profit jumped to RM50.16 million from RM10.34 million in 1Q21. For 1Q22, Bermaz Auto recorded a revenue of RM716.87 million compared to RM320.79 million in 1Q21.

In an exchange filing yesterday, it said the higher group revenue was mainly due to the increase in overall sales volume in Malaysia as consumers rushed to register their vehicles before the expiry of the sales tax exemption incentive period on June 30, 2022.

The exceptional lower revenue recorded in 1Q21 was mainly due to the total lockdown under Phase 1 of the National Recovery Plan in June and July 2021, it said.

Its profitability also benefitted from positive contributions from its associated company, Mazda Malaysia Sdn Bhd, in the current quarter and the strengthening of the ringgit against the Japanese yen.

For 1Q22, the group reported a pre-tax profit of RM716.9 million and RM74.6 million, respectively, compared to the group’s revenue and pre-tax profit of RM897.4 million and RM115.4 million, respectively, for 4Q21.

It said, despite strong vehicle bookings received prior to the expiration of the sales tax exemption incentive, the group’s current quarter revenue fell by RM180.5 million or 20.1%.

“This is mainly due to the ongoing shortages in semiconductor chips and components, continued lockdowns in China and disruption in global supply chain, which had impacted the group’s Mazda sales volume but partly offset by higher sales volume from its Kia vehicles,” it said.

Bermaz Auto is primarily engaged in distribution and retailing of completely built-up (CBU) and completely knocked-down vehicles for Mazda, Peugeot and Kia in Malaysia, provision of after-sales services and spare parts for Mazda, Peugeot, Citroen, DS and Kia marque vehicles in Malaysia, distribution of Mazda marque CBU vehicles and spare parts through appointed dealers in the Philippines, and wholesale and retail of automotive spare parts in Malaysia.

Bermaz Auto’s share was up four sen to RM1.83 with 3.22 million shares exchanging yesterday.