KUALA LUMPUR: Bermaz Auto Bhd's (BAuto) net profit for the third quarter ended Jan 31, 2024 fell 19.22 per cent to RM70.5 million on lower sales volume and lower profit contribution from its associated company, Mazda Malaysia Sdn Bhd.
Mazda Malaysia saw lower production volume during the quarter.
At the same time, BAuto's revenue declined by 8.1 per cent, falling to RM896.5 million from RM975.9 million in the preceding quarter.
BAuto attributed the decrease in revenue to reduced sales volume and a shift in the sales mix within its Mazda brand's domestic operations.
Net profit for the nine month period was 28 per cent higher at RM260.8 million. This was on 21 per cent higher revenue of RM2.99 billion for the period ended Jan 31, 2024.
In a disclosure to Bursa Malaysia today, the company announced a third interim dividend of 4.25 sen per share, which is a single-tier dividend, for the financial year ending April 31, 2024.
BAuto stated that the automotive sector is anticipated to sustain growth, albeit at a reduced rate, influenced by factors like inflationary pressures, geopolitical uncertainties, and sluggish global economic growth, which could negatively affect the overall local economy.
"The launching of new and/or new facelift models of the Group's existing and new vehicle marques are still very much dependent on the market sentiments and economic conditions then.
"It is projected that the total industry volume (TIV) for 2024 will decrease by 59,731 units or 7.5 per cent to 740,000 units.
"This decline is primarily attributed to factors such as uncertainties in the global economic outlook arising from conflicts and geopolitical tensions in the Middle Eastern and Eastern European countries," it added
It highlighted the expected deceleration in the worldwide economy and local apprehensions about consumer spending due to the potential implementation of various new taxes.