Bermaz Auto’s Q4 Net Profit Rises By 28% But Expects Tough Times Ahead

On the strength of improved revenue, Bermaz Auto Bhd’s net profit increased by 27.84% to RM100.62 million for the fourth quarter that ended on April 30, 2023, from RM78.7 million a year earlier.

According to a filing with the stock exchange, the automaker’s earnings per share jumped to 8.63 cents from 6.77 cents.

The final rush to register the balance of unfulfilled back orders (made before June 30, 2022) in February and March 2023 for the sales tax exemption incentives was a major factor in the quarter’s 19.51% increase in revenue from RM897.36 million to RM1.07 billion.

A special dividend of 7.5 cents per share and a fourth interim dividend of 3.5 cents per share were announced by Bermaz Auto and are due on August 4.

In comparison to 8.75 cents for FY2022 (fiscal year), this increases the total dividends declared for FY2023 to 22 cents per share.

From RM155.11 million in FY2022, Bermaz Auto’s full-year net profit increased 95.82% to RM303.74 million. This increase is largely attributable to an increase in the group’s overall domestic sales volume as well as a better gross margin for its Mazda domestic operations, which benefited from the ringgit’s appreciation against the yen.

Due to the group’s domestic operations’ continuous completion of the sizable back orders that were received prior to the expiration of the sales tax exemption incentives, the full-year revenue increased by 52.7% to RM3.55 billion from RM2.32 billion.

According to Bermaz Auto, the automotive industry will likely continue to encounter difficulties such a lack of microchips and component supplies, delays in vehicle production, stricter credit conditions, rising interest rates, the unpredictability of geopolitical crises, and poorer global growth.

The group said in a statement that it expects its performance to be strong for FY2024 and that “the launching of new and/or new facelift models of the group’s existing marques, namely Mazda, Peugeot, and Kia, is still very much dependent on market sentiments and economic conditions.”

The market capitalization of Bermaz Auto rose to RM2.61 billion on Monday, June 12, as shares of the company ended unchanged at RM2.23.

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Timothy Prakash

Fuelled by cigarettes, coffee and 90's rock music

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