Bermaz Auto Bhd (BAuto) has issued a cautious outlook for its performance in the financial year ending 30 April 2026, citing intensifying competition and prevailing macroeconomic headwinds.
For the fourth quarter ended 30 April 2025 (4Q25), the group reported a sharp 77% year-on-year decline in net profit to RM21.2 million, translating to earnings per share of 1.82 sen. Revenue fell 44% year-on-year to RM528.65 million, primarily due to a marked contraction in sales volume from its Mazda and Kia domestic operations. The group attributed this decline to the ongoing influx of competitively priced Chinese-manufactured vehicles in the Malaysian market, which has significantly disrupted established brand performance.
For the full financial year ended 30 April 2025 (FY25), BAuto posted a 55% drop in net profit to RM155.91 million or 13.35 sen earnings per share. Revenue also declined 33% year-on-year to RM2.6 billion.
The company noted that the Malaysian automotive sector is facing a subdued growth trajectory, shaped by persistent inflationary pressures and a slowdown in global economic momentum. Uncertainties stemming from geopolitical conflicts and evolving trade tariff negotiations, particularly involving the United States, are expected to have further repercussions on domestic economic sentiment and consumer spending patterns.
Additionally, the surge of Chinese vehicle brands continues to weigh on market dynamics, adversely affecting the performance of other marques in Malaysia. BAuto indicated that the timing and success of upcoming model launches or facelifts will remain contingent on prevailing market sentiment and broader economic conditions.
Citing data from the Malaysian Automotive Association, BAuto reported that the total industry volume (TIV) for April 2025 stood at 60,527 units, representing a 16.8% decline (12,177 units) compared to March 2025’s volume of 72,704 units. This contraction was largely attributed to a shorter working month in April due to Hari Raya festivities and a front-loaded delivery push in March.
Year-to-date, TIV for the first four months of 2025 reached 248,730 units, reflecting a 5.4% decline (14,320 units) from the same period in 2024, which saw 263,050 units sold.
Outside of Malaysia, BAuto’s operations in the Philippines are operating within a more resilient macroeconomic environment. According to the Department of Finance, the Philippines recorded a GDP growth rate of 5.4% in the first quarter of 2025 (4Q24: 5.3%). The outlook for the remainder of 2025 remains positive, with GDP projected to grow around 6.0% in the coming quarters.
In respect of FY25, BAuto’s Board of Directors has approved a fourth interim single-tier dividend of 1.50 sen per share. This is significantly lower than the 4.75 sen and special dividend of 7.00 sen declared in the corresponding period last year. The dividend will be payable on 5 August 2025, with the entitlement date set for 18 July 2025.
-The Star
