Automobile importer Toyota Tshusho (South Sea) Ltd, trading 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’s net profit fell by 13 percent to $11.6 million from $13.4 million in the same period in 2023, with challenges in market conditions and limited product availability cited as primary factors.
In addition to the profit decrease, TTS noted that staffing shortages in technical areas adversely impacted revenue from fixed operations. Despite these setbacks, the company is optimistic about a resurgence in the latter half of the fiscal year, bolstered by improved stock availability and newly refined marketing strategies.
The profit and loss statement revealed an eight percent decrease in net profit after tax in Fiji year-over-year, stemming largely from a drop in new vehicle revenue following the transition of Toyota’s Prado model from LC150 to LC250. However, the anticipation surrounding the launch of the new Toyota Prado in November has generated substantial customer interest, suggesting the potential for recovery.
The executives, Chairman Akira Shida and CEO Ronald Kumar, mentioned that stock allocation challenges remain due to high global demand for Toyota vehicles. Additionally, the sales of ex-lease used vehicles faced delays due to operational requirements. TTS is actively addressing talent shortages and implementing strategies to overcome the skilled labor migration issues experienced in recent years.
Despite a slower-than-expected start to the financial year, TTS is dedicated to its strategic plan focused on enhancing core operations and exploring opportunities along the value chain. They remain hopeful about achieving their financial goals while also being cautious of any unforeseen circumstances that could impact performance.
In summary, while TTS faces challenges in the current market, its proactive strategies for recovery and the positive reception of the new vehicle launch provide a hopeful outlook for future performance.
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