$1.93m profit – Financial results $6.9m behind budget

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Asco Motors new renovated building near completion at Nabua. Picture: RAMA
Asco Motors new renovated building near completion at Nabua. Picture: RAMA

The half year financial results for Toyota Tsusho (South Sea) Ltd, trading as Asco Motors in Fiji stood at $6.9 million behind budget, attributed mainly to the significant slowdown in the new vehicle and car rental business. Company chairman Masahiro Kumahara said the net profit after tax for the half-year ended September 30, 2020 was $1.926m compared with $6.548m recorded for the same period last year.

According to the chairman the NPAT result is attributed to the adverse impact of the COVID-19 pandemic causing a significant economic downturn globally resulting in a considerable slowdown in all business segment performance.

In a market announcement through the South Pacific Stock Exchange (SPX), the company highlighted that the adverse impact of COVID-19 had been a reduction in demand across new product sales and especially tourism-related locations and businesses such as car rental.

However, it said the effect on maintenance activities, especially concerning essential service-related activities, had been less marked, adding that the company invested significantly to ensure the safety of its valued employees and customers remain the top priority item.

It stated that despite the intense competition and slowdown in new vehicle sales, Toyota continued to retain its brand leadership in the Fiji market primarily driven by growth in mid-SUV, Utility and Vans segment.

Its AVIS Fiji operations were said to continue to feel the impact of the border closure and nil overseas tourism arrivals, adding that the business changed its tact and to strengthen the relationship with its local customers, local specials were introduced, which had led to gradual improvement of the business profitability.

With the management continuing to ensure the AVIS fleet operates at the optimal levels the AVIS business is expected to see a gradual improvement based on the strategies employed.

The chairman said there continued to be an emphasis on improving their facilities for customers and staff, as well as on customer service delivery to provide an excellent customer experience.

Meanwhile for its American Samoa, Samoa and Tonga operations the company stated that their business performance was lower than expected for the half-year ending September 30, 2020, however sales and profits performed below budgets and last year’s results, and quarter three and four results were expected to see small signs of recovery.

He said as the world endeavours to recover from the pandemic, all their markets remain focused on keeping to the established business continuity plans.

Mr Kumahara said the market and economic environment remained a crucial factor for the next half of the year and added that in saying this, the group results would be a lower profit compared with the same period last year; however, there are positive signs of recovery post the Fiji national budget announcement next year.

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