PROTON increases car sales, revenue, profit and domestic market share

Published on February 20th, 2010

PROTON Holdings Berhad’s financial performance continued to show a positive trend, with the company posting a cumulative Group profit before tax of RM248 million for the three quarters (ended 31 December 2009) of its financial year ending 31 March, 2010 (FY2009/10).

Through aggressive marketing and emphasis on operational efficiencies amidst an economically challenging 2009 while being faced with the challenges of a contracting domestic total industry volume (TIV), saw PROTON maintaining an increase in revenue, profit before tax, sale of cars and domestic market share for the year to date.

However, decline in domestic sales volume coupled with higher promotional costs required to drive sales towards the calendar year end affected the Group’s profit before tax of RM83 million in the reported quarter (as at end December 31, 2009), an 18% decrease from the RM101 million recorded in the immediate preceding quarter.

The Group’s profit before tax of RM83 million in the reported quarter was an improvement compared to the loss before tax of RM61 million in the corresponding quarter last year. Notably, the Group’s revenue for the reported period increased to RM2.013 billion from RM1.548 billion in the same period last year, reflecting encouraging growth in sales and better profit margins.
Domestic car sales meanwhile, continued to increase by 3% largely driven by PROTON’s top three selling models the Exora, Saga and Persona, enabling the company’s domestic market share to expand from 26% to 28%.

“The improvement in performance to date is the result of cumulative initiatives launched over the last four years, particularly in the enhancement of product portfolio, cost management and strengthening of the automotive ecosystem,” said PROTON Holdings Berhad Chairman Dato’ Mohd. Nadzmi Mohd. Salleh.
On the prospects of 2010, PROTON Holdings Berhad Group Managing Director Dato’ Haji Syed Zainal Abidin Syed Mohamed Tahir said signs of the global economic and financial recovery are being considered cautiously as the company pushes ahead with plans to realize further operational efficiencies.

2008-proton-persona-21

In order to enhance competitiveness, the company’s dealer and supplier network will further be rationalized, quality improvements continue to be emphasized, capacity will be optimized, and investments will continue to be focused on new products development, richer product mix and increase use of indigenous technology.

“With the Malaysian Automotive Association (MAA) projecting the TIV to grow by a further 2.4% to 550,000 vehicles in 2010, we are optimistic that our offering of products will be well positioned to take advantage of the growing demand,” said Dato’ Syed Zainal Abidin.

On the international front, acceptance for models like the Exora, Persona and Saga have been encouraging and efforts are being intensified to better position the brand in selected key and targeted markets that would be able to contribute to a consistent and sustainable volume of sales.

text & pix: Proton

FINANCIAL HIGHLIGHTS Q3 (AS AT DECEMBER 31, 2009)

FY2009/2010

(31/12/2009)

RM’000

FY2008/2009

(31/12/2008)

RM’000

Profit/(loss) before taxation

82,958

(60,945)

Cumulative Profit before taxation

247,988

54,363

Revenue (Q3)

2,013,533

1,548,206

Revenue cumulative period (Q1-Q3)

5,969,641

5,109,529

Cash, bank balances & deposits (unaudited)

1,495,465

1,158.40

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