PETALING JAYA: Bermaz Auto Bhd’s (BAuto) net profit for the third quarter ended Jan 31, 2020 fell 66.5% to RM27.15 million compared with RM81.01 million in the same quarter last year.
However, it has proposed to declare an interim dividend of 1.45 sen per share for the quarter under review, payable on May 28.
The group said the lower earnings were largely due to lower contribution from the domestic operations and associate company Mazda Malaysia Sdn Bhd on the back of lower domestic sales volume and margin as a result of higher costs on the new facelift of the CX-5 model compelled by the current market sentiment.
Its revenue declined 39.9% to RM467.46 million from RM778.13 million.
For the nine-month period, BAuto’s net profit dropped 52.2% to RM98.05 million against RM205.21 million in the same period a year ago, with revenue skidding 25.3% to RM1.46 billion from RM1.95 billion.
On prospects, the group said the Malaysian automotive sector is expected to remain challenging in 2020 in view of the stiff competition among the automotive players.
“The global headwinds, such as the trade war between the US and China, the outbreak of the Covid-19 virus, the fear of global recessions and the recent political turmoil has resulted in weaker consumer sentiment particularly on purchase of big-ticket discretionary items such as motor vehicles.”
Meanwhile, Bermaz Auto Philippines Inc seeks to preserve its revenue and profitability through further strengthening of its brand equity in tandem with sustainable dealer support and the launch of the new and facelift models.
In view of these, BAuto directors anticipate the performance of the group for the remaining quarter of the financial year ending April 30, 2020 will be challenging.
source https://www.thesundaily.my/business/bermaz-auto-posts-q3-net-profit-of-rm2715m-proposes-145-sen-dividend-MC2136680
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