Updated Berjaya Auto 3Q profit soars 376% on-year to RM30.6m

by **Cals** Mon 10 Mar 2014, 19:29

Updated Berjaya Auto 3Q profit soars 376% on-year to RM30.6m

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Monday, 10 March 2014 18:33

KUALA LUMPUR (Mar 10): Berjaya Auto Bhd’s net profit rose 376% year-on-year (y-o-y) to RM30.6 million in the third quarter ended Jan 31, 2014, from RM6.4 million.

Revenue also leapt 53% y-o-y to RM343.0 million from RM224.6 million.

In a statement to Bursa Malaysia, the firm said the higher profit mainly arose from the weakened yen against the ringgit.

It also said the higher profit was due to the higher revenue and improvement in the overall gross profit margin in Malaysia.

Berjaya Auto said the larger revenue was mainly due to good demand for the new complete built units of Skyactiv models (Mazda3, CX-5 (2.5L), Mazda6 and Biante) and sales contribution from Berjaya Auto Philippines Inc.

Mazda Malaysia Sdn Bhd is an associated company of Berjaya Auto.

For the nine-month period, net profit recorded RM84.3 million versus RM27.5 million in the previous corresponding period, while revenue registered RM1.05 billion from RM656.1 million a year earlier.

Berjaya Auto said the higher profit was mainly due to higher revenue and improvement in gross profit margin for certain popular models in Malaysia.

The firm said the higher revenue was mainly due to higher motor vehicle sales volume in Malaysia as a result of good demand for all CX-5 and Mazda6 models.

“Outlook for the short and medium terms will be challenging as the Malaysian automotive industry is getting crowded with distributors of Korean and European cars,” said Berjaya Auto going forward.

“We are ready to face these challenges to increase market share with a sustainable growth rate,” it said.