Automobile importer Toyota Tshusho (South Sea) Ltd, known as Asco Motors Fiji, has reported a decline in its net profit after tax (NPAT) for the first half of the financial year ending September 30, 2024. The company experienced a 13 percent decrease in NPAT, dropping from $13.4 million in the same period last year to $11.6 million. The downturn is largely attributed to fluctuating market conditions and challenges related to the availability of certain products.
The revenue from fixed operations also faced setbacks due to staffing shortages in technical areas, impacting performance across various segments. Despite these challenges, TTS is optimistic about a rebound in the latter half of the year. The company’s strategy includes improving stock availability and refining marketing efforts to address revenue and profit shortfalls.
In their profit and loss statement, signed by chairman Akira Shida and CEO Ronald Kumar, TTS reported an 8 percent drop in NPAT in Fiji, primarily due to reduced revenue from new vehicle sales. This downturn coincides with the transition from the Toyota Prado’s LC150 to the newly introduced LC250 model, which is expected to generate significant customer interest moving forward.
There have been ongoing challenges with stock allocations, driven by the high global demand for Toyota vehicles. Additionally, the sales of ex-lease used vehicle units have faced delays. The company is actively addressing skilled migration issues, which have affected human resources over the past couple of years.
Though the first half of the financial year fell below expectations, TTS believes in its capacity to meet its annual financial targets. The company remains dedicated to strategic initiatives aimed at reinforcing core operations and exploring growth opportunities throughout its value chain.
In summary, while TTS faced a challenging first half, their proactive approach to inventory management, marketing, and human resources positions them for potential recovery and financial success in the latter half of the year. With the launch of the new Toyota Prado generating excitement, there is a sense of cautious optimism surrounding the company’s performance moving forward.
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