Automobile importer Toyota Tshusho (South Sea) Ltd, operating as Asco Motors Fiji, has reported a decline in net profit after tax for the first half of the financial year ending September 30, 2024. The company experienced a 13 percent drop, with net profit totaling $11.6 million compared to $13.4 million in the same period last year. This downturn is largely attributed to fluctuating market conditions and limited availability of specific vehicles.
Moreover, the firm noted that staffing shortages in technical areas negatively impacted revenue from fixed operations. Despite the challenges, TTS is looking forward to a strong recovery in the second half of the year due to improved stock availability and updated marketing strategies designed to enhance revenue and gross profit.
In its report to the South Pacific Exchange, TTS indicated an eight percent decrease in net profit after tax in Fiji, motivated by a lag in new vehicle sales as the company transitioned from the Toyota Prado model LC150 to the newly introduced LC250, which is generating significant customer interest.
The company is currently dealing with stock allocation issues stemming from the high global demand for Toyota vehicles, and there have been delays in the sale of ex-lease used vehicles due to operational adjustments. TTS is also focusing on enhancing its human resources to tackle the skilled migration challenges faced recently.
While the first half of the year fell short of expectations, TTS remains hopeful and committed to hitting its financial goals by strengthening core operations and seeking new opportunities along the value chain. The company acknowledges potential risks but is optimistic about better performance in the upcoming months.
This situation reflects the resilience of TTS and its proactive approach to overcoming market challenges, and it highlights the potential for growth in the automotive sector as new models attract customer interest.
Summary: TTS reported a 13% decline in net profit due to market fluctuations and staffing shortages. However, the company anticipates a recovery in the second half of the year, supported by the launch of the new Toyota Prado and improved stock availability, emphasizing optimism for achieving financial targets despite initial setbacks.
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