Berjaya Auto 4Q profit soars 106% to RM48m, full-year profit higher at RM132m

by **Cals** Thu 12 Jun 2014, 03:05

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Wednesday, 11 June 2014 19:04

KUALA LUMPUR (June 11): Berjaya Auto Bhd’s net profit soared 106% on year to RM48.1 million in the fourth quarter ended April 30, 2014 (4QFY14) from RM23.3 million. But revenue fell 3% to RM394.9 million from RM408.2 million.

In a statement to the stock exchange, Berjaya Auto, a car distributor, said the significantly higher net profit was mainly due to improvement in gross profit margin in Malaysia and the pre-tax profit recorded by its unit Mazda Malaysia Sdn Bhd (MMSB).

For the full-year, Berjaya Auto's net profit rose to RM132.4 million from RM50.9 million in the previous year, while revenue was higher at RM1.45 billion compared to RM1.06 billion.

Berjaya Auto attributed the higher net profit to better gross profit margin from certain popular models in Malaysia as well as full-year profit contribution from MMSB and Berjaya Auto Philippines Inc (BAP).

According to Berjaya Auto, the increase in revenue was mainly due to higher sales volume in Malaysia and full-year sales contribution from BAP.

Looking ahead, Berjaya Auto said “the board expects its growth rate for the next financial year to be moderate.

“However, it will be challenging due to rising cost of doing business and intense competition from some distributors who continuously carry out aggressive sales promotion campaigns.”

Berjaya Auto plans to pay its second interim single-tier dividend of 3.5 sen a share for 4QFY14, bringing the full-year payout to 5.25 sen.