Tuesday May 25, 2010
MBM plans RM100mil network expansion
KUALA LUMPUR: MBM Resources Bhd plans to spend RM100mil over the next three years to expand its distribution network.
Managing director Looi Kok Loon said this year, RM20mil was allocated to expand its Perodua, Hino and Volkswagen (VW) dealerships.
“MBM will set up 3S centres (sales, service and spare parts) in Butterworth, Ipoh, Shah Alam, Johor Baru, Batu Pahat and Kota Kinabalu to deliver growth potential,” Looi said after the company AGM yesterday.
Looi said MBM's 86%-owned subsidiary, Federal Auto Holdings Bhd, would make a significant investment in VW dealerships in Petaling Jaya and Johor Baru to reassert its multi-brand strategy in driving growth.
On the financial year ending Dec 31, 2010, Looi said the group was optimistic based on the positive first quarter results to March 31. MBM yesterday reported net profit of RM40mil on revenue of RM363.8mil compared with RM9.4mil and RM246.1mil in the previous corresponding period.
“We expect the second and third quarters to remain positive due to the outstanding orders and also the full impact of VW and Hino dealerships in 2010,” Looi said.
He said the first quarter numbers would be indicative of the trend for the rest of the year, adding that volume gains and the stronger ringgit would continue to support the group.
In notes accompanying its results filing, MBM cited the recovery in sales, the spillover of orders for new models launched last year and contributions from additional dealerships as having a positive impact on its overall performance for the quarter. - Bernama
Looi also said MBM was constantly looking for new brand partners as it had the economies of scale, assets and people. MBM is involved in distributorship and dealership of major international brands of vehicles in Malaysia.
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