KUALA LUMPUR: Bermaz Auto Berhad (BAuto) reported a higher Group revenue and pre-tax profit of RM976.0 million and RM115.5 million respectively in the third quarter ended Jan 31, 2023 as compared to the preceding year corresponding quarter which reported a Group revenue and pre-tax profit of RM623.1 million and RM55.1 million respectively.
Higher group revenue of RM352.9 million or 56.6% was achieved mainly due to the continued fulfilment of the substantial backorders received for the Group’s domestic operations prior to the expiry of the sales tax exemption incentive in June 2022.
In line with the increase in revenue as explained above, the Group’s pre-tax profit had also improved by RM60.4 million or 109.6% compared to the preceding year corresponding quarter.
Gross margin for its Mazda domestic operations had improved due to the change in composition of sales mix and the appreciation of the MYR against JPY. Likewise, contribution from its associated company, Mazda Malaysia Sdn Bhd (MMSB), had improved in line with the higher
sales volume in both the domestic and export markets.
The Group has also accounted for its Employees’ Share Scheme expense of about RM0.4 million in the current quarter under review which is similar to RM0.4 million in the preceding year corresponding quarter.
For The 9-month Period
The Group reported a higher revenue and pre-tax profit of RM2.48 billion and RM281.7 million respectively as compared to a revenue and pre-tax profit of RM1.43 billion and RM103.1 million respectively in the corresponding period of the preceding year. Higher group revenue of RM1.05 billion or 73.4% was achieved mainly due to the continued fulfilment of the substantial backorders received prior to 30 June 2022 for the Group’s domestic operations. Preceding year’s corresponding period results were adversely impacted during the first quarter of the financial year 2022 when Phase 1 of the National Recovery Plan (NRP) was imposed in June and July 2021.
Sales gradually improved when the country moved from Phase 1 to Phase 4 of the NRP in October 2021.
Similarly, the Group’s pre-tax profit had also improved by RM178.6 million or 173.1% compared to the preceding year corresponding period largely due to increase in the overall sales volume from the Group’s domestic operations, better gross margin for its Mazda domestic operations, the
appreciation of the MYR against JPY and higher share of results from MMSB.
The Group has also accounted for the expense relating to the Group’s Employees’ Share Scheme of about RM1.1 million in the period under review as compared to RM1.5 million in the preceding year corresponding period.
Dividend
The Board has approved and declared a third interim dividend of 4.50 sen single-tier dividend per share in respect of financial year ending 30 April 2023 (preceding year’s corresponding quarter ended 31 January 2022: 2.25 sen single-tier dividend per share). The entitlement date has been
fixed on 18 April 2023 and payable on 5 May 2023. This will bring the total dividend declared for the financial period ended 31 January 2023 to 11.00 sen single-tier dividend per share (previous financial period ended 31 January 2022: 4.25 sen single-tier dividend per share).
Future Prospects
Overall, the Malaysian economy had expanded by 8.7% in 2022 (2021: 3.1%). For the calendar year 2023, the Malaysian economy is expected to expand at a more moderate pace amid a challenging external environment with domestic demand continuing to drive growth, supported
by the continued recovery in the labour market and the realisation of multi-year investment projects (Source: Economic and Financial Developments in Malaysia in the Fourth Quarter of 2022).
The Year-To-Date (YTD) Total Industry Volume (“TIV”) for 2022 increased by 211,775 units or 41.6% to 720,658 units compared to the YTD TIV for 2021 of 508,883 units mainly due to the substantial orders received prior to the expiration of the sales tax exemption in June 2022. The TIV
for 2023 is however expected to decline by 9.8% to 650,000 units due to factors such as the slowdown in the global economy and the expiry of the sales tax exemption for vehicle orders made prior to 30 June 2022 to be registered by 31 March 2023.
In January 2023, the TIV of 49,461 units was 35% lower (27,196 units) than in December 2022 (76,657 units) due to the shorter working months in view of the Chinese New Year festive holidays and the continued shortages of microchips and components which had affected certain car makes (Source: Malaysian Automotive Association Media Releases in January and February 2023).
In the Philippines, the Philippine Statistics Authority had reported in January 2023 that the country’s Gross Domestic Product (GDP) had posted a growth of 7.6% for the calendar year 2022 (2021: 5.7%). This was mainly attributable to the full re-opening of the country’s economy with the resumption of all economic activities and underpinned by pent-up domestic demand.
For the current quarter, the Group continues to register positive results mainly due to higher sales volume from the clearing of the substantial backorders received prior to the expiry of the sales tax exemption in June 2022 and its promotional campaign of absorbing 50% of the sales tax for vehicle bookings made in July till December 2022. In addition, the appreciation of the MYR against JPY and higher share of results from MMSB had contributed positively to the Group’s overall results.
The automotive sector continues to face ongoing challenges such as shortages in supply of microchips and components, delays in supply of vehicles, tighter financial conditions, uncertainties in geopolitical conflicts and weaker global growth. Barring any unforeseen circumstances, the
Board anticipates the performance of the Group to remain positive for the final quarter of the financial year ending 30 April 2023.