KUALA LUMPUR (Sept 13): Bermaz Auto Bhd (BAuto) saw its net profit for the first financial quarter ended July 31, 2021 (1QFY22) rise 11% to RM10.27 million from RM9.25 million a year ago. Earnings per share rose to 0.88 sen for 1QFY22 from 0.80 sen for 1QFY21. 

This came despite revenue declining 28.5% to RM320.79 million during the quarter from RM448.89 million a year ago. 

BAuto has proposed a dividend of 0.5 sen per share for the quarter, similar to a year ago.

In a filing with Bursa Malaysia today, BAuto said the drop in revenue was largely due to the lower sales volume registered from its Malaysian operations as the motor industry was impacted by the lockdown under Phase 1 of the National Recovery Plan (NRP).

Its showrooms were not allowed to operate for two months since June. 

Meanwhile, the higher net profit was attributed to the lower share of loss from one of its associated companies — Mazda Malaysia Sdn Bhd — as well as higher profit contribution from the domestic operations that came on the back of the group’s cost-saving measures. 

The group is engaged in the distribution of Mazda vehicles in Malaysia and the Philippines, and the retailing of Mazda vehicles as well as the provision of after-sales services for Mazda vehicles in Malaysia. 

During the last financial year ended April 30, 2021 (FY21), the group had added to its portfolio the distribution and provision of after-sales services for the Peugeot and Kia brands. 

In the announcement, the group pointed out that car dealers have posted total losses of more than RM14 billion in June and July due to the sharp plunge in sales of vehicles in the domestic market following the lockdown measures. 

“The shutdown affected not only the automotive companies but also the entire automotive ecosystem nationwide,” it said. 

Total industry volume has shrunk dramatically from typically 45,000 to 50,000 units per month to only 1,921 units in June and 7,086 units in July, said the group, citing data from the Malaysian Automotive Association. 

BAuto said the outlook for the automotive industry remains volatile and uncertain, despite the gradual reopening of the economy given the resurgence of Covid-19 cases, adding that the industry is dependent on the containment of the virus and progress of the vaccinations. 

Meanwhile, on the Philippine market, its government has also imposed further lockdowns in the country to stem the spread of Covid-19, which BAuto said will have an impact on the economy for the rest of the calendar year. 

“Premised on the foregoing, the directors anticipate the performance of the group for the remaining quarters of FY22 to remain challenging and uncertain,” it said. 

BAuto’s share price closed at RM1.58 today, down 1.25% from yesterday's closing price. This valued the group at RM1.84 billion.