Berjaya Auto’s earnings down 7% in 1QFY16

by **Cals** Fri 11 Sep 2015, 20:25

Berjaya Auto’s earnings down 7% in 1QFY16

By Sangeetha Amarthalingam / digitaledge Daily | September 11, 2015 : 10:13 AM MYT

GEORGE TOWN: [size=16]Berjaya Auto Bhd ([You must be registered and logged in to see this image.] Valuation: N/A, Fundamental: N/A)’s (BAuto) net profit dropped nearly 7% to RM52.2 million, or 4.58 sen per share, with a marginally higher revenue of RM512.5 million in the first quarter ended July 31, 2015 (1QFY16) due to higher marketing expenses.

In a filing with Bursa Malaysia, BAuto declared a first interim dividend of 2.25 sen to be paid on Oct 21 for FY16 ending April 30, 2016.

BAuto said its performance might be affected by regulations and policies governing the importation of completely built-up vehicles and completely knocked-down (CKD) parts into Malaysia.

In a statement, BAuto said the introduction of the goods and services tax (GST) on April 1 here had also impacted its revenue as sales are now recorded net of the GST.

Meanwhile, its local and Philippine operations continued to record double-digit growth in sales volume of Mazda vehicles in 1QFY16.

However, revenue only grew 0.9%, largely due to unfavourable sales mix relating to the competitively priced Mazda2 SKYACTIV and Mazda3 CKD SKYACTIV models.

The group said the remainder of FY16 will be challenging due to local and global uncertainties that may cause further weakening of the ringgit against the yen.

It would have an effect on raising product costs and affect Mazda vehicles’ price competitiveness in Malaysia amid soft demand in the motor vehicles market.

This article first appeared in digitaledge Daily, on September 11, 2015.
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