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MBM RESOURCES RESILIENT AMIDST DAMPENED MARKET CONDITIONS; POSTS 109.4% INCREASE IN PBT FOR Q3FY16

23 Nov 2016

MBM RESOURCES RESILIENT AMIDST DAMPENED MARKET CONDITIONS; POSTS 109.4% INCREASE IN PBT FOR Q3FY16

KUALA LUMPUR, 23 NOVEMBER 2016MBM Resources Berhad and its associates (“MBMR” or the “Group”), a leading domestic automotive group, today posted their financial results for the third quarter of the 2016 financial year (“Q3FY16”). The Group continued to show resilience amidst dampened market conditions, registering a Profit Before Tax (“PBT”) for the quarter under review of RM 26.1 million, an increase of 109.4% from the previous year’s corresponding period. The higher PBT was largely due to improved results from MBMR’s associates, thanks to the successful launch of the Perodua Bezza in July, as well as higher sales volumes from Hino Motors Sales (M) Sdn Bhd (“HMSM”).

Speaking on the Group’s results, Looi Kok Loon, Group Managing Director of MBMR shared, “We are pleased to be posting improved results this quarter despite the sluggish conditions of the local automotive industry of the past year. Our Motor Trading Division for example, achieved increased revenue of 3.9% as compared to the same period last year, despite a contraction in Total Industry Volume (“TIV”) of 12.4% against the same period. It affirms that the business strategy we have in place is firmly on track, as we continue to work on improving both our operations as well as enhancing our current capabilities.”

MBMR’s Motor Trading Division registered a 28.6% improvement in PBT for Q3FY16, thanks to a favourable product mix from the launch of the Perodua Bezza as well as the Volvo XC90, which continue to enjoy popularity among consumers. Though still incurring losses, the Group’s Auto Parts Manufacturing Division recorded higher deliveries of alloy wheels in the quarter under review, which boosted its revenue generation. Consequently, Earnings Per Share (“EPS”) attributable to shareholders of the Group for the year-to-date stands at 14.97 sen. Market conditions are expected to continue to remain challenging for automotive companies for the rest of 2016, with aggressive marketing campaigns and year-end sales expected to heighten as brands look to reduce their end-of-year stocks leading to sustained pressure on margins.

Looi added in closing, “Both the Board and the management of MBMR are firmly committed towards continuing to improve our efficiencies and margins moving forward, buoyed by new product launches and the sustained streamlining of our current operations. We believe that our strategic blueprint will continue to be viable, allowing us to ensure sustained value creation for all our shareholders, as we pursue our vision of becoming the Complete Automotive Group. The Group has an established track record in the automotive industry, so I believe we are ideally positioned to build upon our strengths to drive fiscally responsible growth.”

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ABOUT MBM RESOURCES BERHAD

MBM Resources Berhad and its associates (“MBMR” or “the Group”) 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, as well as sports tuning brands, ABT and HeicoSportiv in addition to the Williams car care brand.  





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