Automobile importer Asco Motors Fiji, trading as Toyota Tshusho (South Sea) Ltd (TTS), has reported a decline in net profit after tax for the half year ending September 30, 2024. The company saw a 13 percent drop, with net profit landing at $11.6 million compared to $13.4 million during the same period in 2023.
The decrease has been attributed to fluctuating market conditions and challenges in product availability. Specifically, revenue from fixed operations was impacted due to staffing shortages in key technical areas. Additionally, TTS experienced an eight percent decrease in net profit after tax in Fiji, primarily linked to a fall in new vehicle revenue resulting from the transition from the old Toyota Prado model to the new LC250 version.
Despite these challenges, TTS is optimistic about a recovery in the latter half of the financial year. The company anticipates improved stock availability and has plans for new marketing strategies to address revenue and gross profit deficits. The introduction of the new Prado model in November has generated significant customer interest, which could bolster sales moving forward.
Management acknowledges ongoing challenges related to global demand for Toyota vehicles, which has affected stock allocations. Furthermore, delays in the sale of ex-lease used vehicles have been noted, necessitating operational adjustments. The company is also addressing talent shortages caused by skilled migration issues that have surfaced in recent years.
TTS remains committed to its strategic initiatives aimed at enhancing core operations and examining opportunities throughout its value chain. The leadership maintains a hopeful stance, believing they can achieve their financial goals while remaining cautious of potential unforeseen developments that could impact performance.
This report reflects the company’s resilience and strategic outlook amidst market difficulties. With proper adjustments and proactive measures, there is a promising potential for recovery and growth in the forthcoming months.
In summary, while the current financial results reflect challenges, the company’s proactive responses and commitment to improvement signal a positive trajectory ahead.
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