MBM RESOURCES BERHAD WRAPS UP FY16 WITH MAINTAINED REVENUE DESPITE CHALLENGING AUTOMOTIVE MARKET
The Group declares second single tier interim dividend of 3.0 sen per share for FY16.
KUALA LUMPUR, 22 FEBRUARY 2017 â€“ MBM Resources Berhad and its subsidiaries (â€œMBMRâ€ or the â€œGroupâ€), one of Malaysiaâ€™s leading automotive groups, today announced its financial results for the fourth quarter ended 31 December 2016 (â€œQ4FY16â€), registering a slightly improved revenue of 2.3% at RM447.7 million as compared to RM437.7 million in the preceding yearâ€™s corresponding quarter (â€œQ4FY15â€). The increase in revenue is mainly attributed by the higher delivery volume from the Groupâ€™s Auto Parts Manufacturing division, contributing 13.2% to the Groupâ€™s total revenue for Q4FY16. MBMRâ€™s Profit Before Tax (â€œPBTâ€) for the quarter under review dropped by 58.1% to RM7.8 million from RM18.7 million in Q4FY15, upon recognising one-off impairments of RM30.3 million. The PBT was however supported by the share of results of associates and the Joint Venture (â€œJVâ€) as a result of better margin, new model sales as well as the recovery of foreign exchange related costs. Excluding its one-off impairments, the PBT for Q4FY16 would have been higher by RM19.4 million as compared to Q4FY15.
MBMRâ€™s Motor Trading Division, on the other hand, experienced a marginal decrease of 0.1% in revenue at RM388.7 million for Q4FY16 as compared to RM389.1 million recorded in Q4FY15, due to softer demand in the passenger vehicle market as reflected by a 10.8% contraction in Malaysiaâ€™s Total Industry Volume (â€œTIVâ€) against the preceding yearâ€™s corresponding quarter. The reduction, however, was mitigated by the continuing strong demand for the Volvo XC90.
Commenting on the Groupâ€™s results, Executive Chairman of MBMR, Datoâ€™ Abd Rahim Abd Halim (â€œDatoâ€™ Abd Rahimâ€) expressed, â€œWe are pleased that the Group remained resilient and continued to deliver operational growth despite the drop in TIV for Q4FY16 against the corresponding quarter. Due to the challenging economic environment, we have also made assessment on our investments and assets, and recognised some impairments on prudent ground. Looking forward, the outlook for the passenger vehicle market is expected to remain challenging subjected to factors such as continuous market uncertainty, lower consumer sentiment, stringent hire-purchase loan approval process as well as the volatility of Ringgit.â€
For the full financial year review (â€œFYE16â€), MBMR registered reduced revenue of 7.4% at RM1.7 billion and a contracted PBT of 39.0% at RM79.4 million as compared to RM1.8 billlion and RM130.2 million respectively for FYE15. The decline was mainly due to a one-off property contribution accounted for in FYE15. By excluding the one-off contribution, MBMR posted a marginal improvement of 0.6% in revenue and a contraction of PBT by only 5.8% for the financial year under review. Earnings per share stood at 15.9 sen per share for FYE16.
In respect of the financial year under review, the Board has declared a second single tier interim dividend of 3.0 sen per share, amounting to approximately RM11.7 million payable to all shareholders.
Datoâ€™ Abd Rahim added, â€œNotwithstanding the challenging economic landscape ahead, the Group will continue to streamline our operations through efforts in driving sales with new car models, providing improved aftersales service as well as cost management initiatives. We are optimistic for the growth of our Motor Trading division moving forward, fuelled by new and upcoming car models carried by automotive brands offered by the Group. We believe that the Auto Parts Manufacturing division will also be able to leverage on this aspect to deliver higher volume contribution as we kick off the new financial year.â€
ABOUT MBM RESOURCES BERHAD
MBM Resources BerhadÂ and its subsidiaries (â€œMBMRâ€Â orÂ â€œthe Groupâ€)is an automotive conglomerate with diverse investments in the automotive industry. The Group has two core business areas which are Motor Trading, where MBMR is involved in the distribution and dealership of major international and local vehicle brands in Malaysia; and Automotive Parts Manufacturing consisting of wheels (both steel and alloy wheels), safety restraint products (airbags, seat belts and steering wheels) and noise, vibration and harshness (NVH) products. The Group is a significant parts supplier to all major car manufacturers in the country as well as being well represented in all segments of the automotive retail market, from light trucks to medium and heavy duty trucks and buses in the commercial vehicle segment, and from compact entry level cars to luxury cars in the passenger vehicle sector. These include brands like Daihatsu, Hino and Iveco in the commercial sphere, and passenger vehicle brands like Perodua, Volvo, Volkswagen, and Mitsubishi.
Issued by: Esente Communications (M) Sdn. Bhd. on behalf of MBM Resources Berhad
Date:Â 22 February 2017
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