KUALA LUMPUR (Dec 12): Bermaz Auto Bhd (KL:BAUTO), primarily known for assembling Mazda-branded vehicles, saw a 55% drop in net profit for its second quarter ended Oct 31, 2024 (2QFY2025), marking the third consecutive quarter of declining profitability due to intensified competition in the automotive market.
Net profit for the quarter stood at RM40.35 million or 3.45 sen per share, compared with RM90.1 million or 7.73 sen per share in the corresponding period last year, according to the group’s filing with Bursa Malaysia on Thursday.
Revenue for 2QFY2025 fell 35.76% to RM646.86 million from RM1 billion in 2QFY2024, driven by lower sales volumes from its Mazda and Kia domestic operations arising from the increasing competitive environment in the automotive industry.
The group declared a second interim dividend of three sen per share, payable on Feb 7, 2025. As of 2QFY2025, Bermaz had cash and bank balance of RM139.76 million.
Looking ahead, Bermaz foresees a challenging business environment in FY2025, citing inflationary pressures and other macroeconomic challenges.
“Inflationary pressures, ongoing uncertainties in geopolitical conflicts and weaker global growth will have an adverse impact on the overall Malaysian economy," the group said. “Vehicle sales in the country are impacted by the influx of Chinese-made vehicles.”
Bermaz Auto noted that the launch of new or facelifted models across its vehicle marques will depend on prevailing market sentiment and economic conditions.
For the first half of FY2025 (1HFY2025), Bermaz Auto's net profit fell 41.9% to RM110.57 million, compared with RM190.32 million in the same period last year. Revenue for the six-month period dropped 28.77% to RM1.49 billion from RM2.1 billion.
The decline was attributed to lower sales volumes in its Mazda and Kia domestic operations due to rising competition, particularly from Chinese-made vehicles, which are competitively priced and equipped with advanced connectivity features.
Shares in Bermaz Auto closed one sen or 0.97% lower at RM2.04 on Thursday, giving the company a market capitalisation of RM2.39 billion. Year to date, shares in the company have declined by over 12%.