Bermaz nets 11% higher Q1 profit despite revenue drop – lower losses from Mazda, cost-saving measures

Bermaz nets 11% higher Q1 profit despite revenue drop – lower losses from Mazda, cost-saving measures

Bermaz Auto, the distributor of Mazda, Peugeot and Kia vehicles in Malaysia, has announced higher profits for the first quarter (ending July 31) of the financial year 2022. This was despite lower revenues as a result of the recent movement control order, which forced showrooms nationwide to close for a two-month period.

According to a filing with Bursa Malaysia, the company registered RM320.79 million in revenue versus RM448.89 million in the same period the year before, a reduction of 28.5%. Profits, however, rose by 11% from RM9.25 million to RM10.27 million.

Bermaz attributed its improved financial performance to lower losses incurred by its subsidiary Mazda Malaysia, which imports completely knocked down (CKD) kits from Japan for local assembly. The group said the reduction in sales in June and July (during the period of the movement control order) was lower compared to last year, where sales were low throughout the entire quarter.

Bermaz nets 11% higher Q1 profit despite revenue drop – lower losses from Mazda, cost-saving measures

Domestic operations also contributed increased profits despite lower sales, thanks to cost-saving measures implemented by the group. Bermaz said that the outlook for the rest of the financial year remains volatile and uncertain despite businesses reopening for vaccinated customers, as it would be contingent on Malaysia’s ability to contain the virus and its continuing vaccination programme.

In the Philippines, where the group also sells Mazda vehicles, a relaxation of lockdown rules in June allowed sales to pick up again. However, certain areas, such as Metro Manila, went back into lockdown last month due to a spike in cases stemming from the Delta variant of COVID-19. Bermaz said this will impact its performance for the remainder of the year.

Elsewhere, Bermaz purchased a 35% stake in Peugeot distributor Berjaya Auto Alliance (BAASB) from Berjaya, which pulled out of the joint venture. This has raised the group’s shareholding in the company, renamed to Bermaz Auto Alliance, to 55%.

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Jonathan Lee

After trying to pursue a career in product design, Jonathan Lee decided to make the sideways jump into the world of car journalism instead. He therefore appreciates the aesthetic appeal of a car, but for him, the driving experience is still second to none.

 

Comments

  • mnazri on Sep 14, 2021 at 11:44 am

    Where are the new Peugeot 3008 and 2008?

    Like or Dislike: Thumb up 0 Thumb down 0
    • Calvin on Sep 14, 2021 at 12:31 pm

      Berjaya just wants to keep that franchise within the family, I doubt they had any genuine intentions to revive it.

      Like or Dislike: Thumb up 5 Thumb down 0
      • donno on Sep 14, 2021 at 1:16 pm

        Bermaz ≠ Berjaya

        Berjaya already pulled out of the Peugeot distributor.

        Do you even read the article?

        Like or Dislike: Thumb up 3 Thumb down 3
        • Contradiction on Sep 14, 2021 at 6:17 pm

          I guess caveman here havent read the news that scions of Berjaya & Bermaz had married each other hence the reason why Berjaya managed to acquire Bermaz rights to Pug?

          Like or Dislike: Thumb up 1 Thumb down 1
        • Semi-Value (Member) on Sep 14, 2021 at 8:09 pm

          lol bermaz despite what they like you to believe still very much belongs to vincent tan

          Like or Dislike: Thumb up 6 Thumb down 0
  • Mirage on Sep 14, 2021 at 1:20 pm

    Bermaz – We know what we are doing in automotive business. We manage to have bigger profit even with less revenue.

    Berjaya and NAZA – What business? Still hundreds of millions left made by parents so lets just enjoy our jetsetting life!

    Like or Dislike: Thumb up 4 Thumb down 0
  • @SnakeBabu on Sep 14, 2021 at 3:31 pm

    208 mana weii????? MAI tak bagi masuk ke? atau letak pricing tak masuk akal mcm biasa?

    Like or Dislike: Thumb up 1 Thumb down 0
 

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