MBM 1Q profit surges 51% on strong demand for Perodua cars

This article first appeared in The Edge Financial Daily, on May 24, 2019.
-A +A

KUALA LUMPUR: MBM Resources Bhd announced yesterday its net profit for the first quarter ended March 31, 2019 (1QFY19) came in 51.31% higher at RM49.66 million from RM32.82 million a year ago, helped by strong demand for Perodua vehicles. Meanwhile, earnings per share rose to 12.7 sen from 8.4 sen previously.

Quarterly revenue grew 14.9% to RM532.45 million from RM463.46 million for the corresponding quarter a year ago on an improved performance of its motor trading segment. MBM, in an exchange filing yesterday, said the segment saw a 17.1% increase in revenue, contributed by good demand for Perodua vehicles, especially the Myvi and Axia models.

In addition, the new Perodua Aruz and Volvo XC40 also garnered strong interest with the latter catering to a wider market segment. However, consumer interest in Volkswagen appeared to have tapered off after high demand during the goods and services tax holiday in 2018.

Meanwhile, its loss-making auto parts manufacturing segment recorded a marginal 3.2% increase in revenue due to sustained production demand from carmakers to fulfil earlier back orders and to replenish depleted stocks.

MBM said the group is on track to close the operation of its alloy wheel plant by the middle of this year.