LOWER net profit recorded by automobile importer into Fiji and the Pacific have been primarily attributed to variable market conditions and specific product availability limitations.
Publicly-listed Toyota Tshusho (South Sea) Ltd (TTS), trading as Asco Motors Fiji, reported a 13 percent reduction in net profit after tax for the half year ending September 30, 2024 — with NPTA recorded at $11.6million, down from $13.4m recorded in the corresponding period of 2023.
Additionally, the company stated revenue from fixed operations was adversely affected by staffing shortages in technical areas.
However, the company anticipates a strong rebound in the latter half of the financial year, supported by enhanced stock availability and refined marketing strategies aimed at bridging revenue and gross profit gaps.
In its profit and loss statement issued on the South Pacific Exchange (SPX), signed by chairman Akira Shida and company director and CEO Ronald Kumar, said in Fiji, TTS reported an eight percent decrease in NPAT year-on-year, largely because of a decline in new vehicle revenue following the transition in the Toyota Prado model from LC150 to LC250.
The introduction of the new Toyota Prado (LC250) in November this year had sparked substantial customer interest, “positioning us for a recovery in the second half of the year”.
“There are ongoing challenges with stock allocations attributed to the global demand for Toyota vehicles,” Mr Shida and Mr Kumar said.
“Additionally, sales of ex-lease used vehicle units have been delayed due to operational requirements. We are also in the process of implementing recovery efforts related to human resources, addressing the skilled migration challenges encountered over the past couple of years.
“Despite a below-forecast first half, we remain optimistic about achieving our financial targets.”
The company said it was committed to its strategic plan, focused on strengthening core operations and exploring opportunities along the value chain.
“TTS remains optimistic about achieving its financial targets for the year, though it remains vigilant regarding any unforeseen events that could affect performance.”
