KUALA LUMPUR (June 11): Bermaz Auto Bhd posted its weakest ever quarterly and annual results since it was listed in 2013.

The auto manufacturer’s net profit shrank by 96.6% in the fourth quarter ended April 30, 2020 (4QFY20) to RM2.46 million from RM60.06 million a year ago, on lower vehicle sales in Malaysia and Philippines.

Quarterly earnings per share dropped to 0.21 sen from 5.18 sen in 4QFY19, according to the company’s filing. Bermaz did not declare any dividend compared with 10.5 sen per share in the previous corresponding quarter.

Bermaz is a distributor for Mazda vehicles. One of the reasons for the weak sales was the Movement Control Order (MCO) in Malaysia and the similar Enhanced Community Quarantine in Luzon, Philippines, which started from March 17 and 18 respectively. The measures to contain the COVID-19 outbreak have hit hard on its car sales for six weeks during the financial quarter under review.

In the six-week period, no vehicle sale was recorded in both countries, Bermaz said.

The weaker sales in 4QFY20 dragged Bermaz’s quarterly revenue to RM299.36 million — down by 44.4% from RM538.28 million, it added.

The dismal performance for the quarter weighed on Bermaz’s annual results. Its annual net profit slid 62.3% to RM100.51 million from RM264.04 million.

Also contributing to the overall lower sales for the year, particularly in Malaysia, was the delay in delivery of new facelift models caused by pricing issues.

“Previous financial year recorded significantly higher unit sales mainly due to the three-month 'Sales Tax holiday' period and also boosted by the Group's promotional campaign in absorbing the Sales Tax,” it pointed out as well.

Annual revenue slumped 30% on-year to RM1.76 billion from RM2.52 billion — making it the weakest since FY17.

On prospects, Bermaz pointed out the Malaysian Automotive Association’s (MAA) downward revision of 2020 total industry volume (TIV) by 34% to 400,000 units from 607,000 units previously.

However the sales tax exemption announced by the Malaysian Government for passenger vehicles sales from June 15 to Dec 31, 2020 was also highlighted by the group.

In the Philippines, full-year sales could drop by 40%, according to the Association of Vehicles Importers and Distribution Inc.

“Any launch of new and/or facelifts Mazda models will depend on the market sentiments and economic conditions then,” Bermaz said, citing the economic impact from the COVID-19 outbreak.

“Premised on the foregoing, the directors anticipate the performance of the group for the financial year ending 30 April, 2021 will remain very challenging.

“Appropriate austerity measures are being implemented to mitigate the current conditions such as tightening of operational costs and overheads,” it added.

Shares of Bermaz rose 10 sen or 6.58% to RM1.62 on Wednesday, valuing the group at RM1.88 billion.