Jetcon Corporation, dealers of pre-owned motor vehicles, says it has experienced a rebound in bookings and sales since the Government of Jamaican began lifting COVID-19 restrictions in June.
The company saw profit decline to J$10.31 million in the March 2020 quarter from J$15.2 million in the same period last year.
In notes attached to the quarter’s results, management said, “Thankfully, we are beginning to see light at the end of the tunnel, with the number of new cases [of COVID] drastically reducing, and curfews beginning to ease, we anticipate beginning the journey to normalcy by the end of the June quarter.”
They added, “To that end, we are seeing more customers visiting our show room since the recent easing of travel curtailment, in addition we are currently formulating strategies to foster increased business.”
Revenues for Jetcon slipped by seven per cent to $227 million, down from $246 million in the first quarter ended March 31, 2020.
The profit outturn resulted in earnings per share of 1.77 cents, versus 2.61 in 2019.
Remarks attached to the quarter’s earnings outlined, “sales took a sharp dive in March when the first case of COVID-19 was announced in Jamaica, and sales to date have fallen by 85-90 per cent.” In response Jetcon took measures to cut expenses, including reduced operating hours and temporarily furloughing staff.
Directors note that in the short term, “used car prices will decrease, with the shutdown of new car production worldwide, prices of used cars will increase in the long term.”
They note also that the onset of the COViD-19 or Coronavirus global outbreak may affect the supply of vehicles from Japan, as new-car factories shut down due to the spread of the disease.
However, directors state that with Jetcon’s level of inventory, it should be able to mitigate the effects for some time.
They outline that the company continues to enjoy a healthy balance sheet “that will stand us in good stead to navigate a challenging period ahead as we navigate the impact of the COVID-19 disease on our country, people and business.”
Inventory increased compared to the same quarter in 2019, from $402 million to $477 million ending March 2020, partially resulting from slower sales in the quarter.
Total receivables for the quarter amounted to $85 million with more than half of it related to amounts recoverable for GCT and deposit on purchases of vehicles.
In its annual report, the company outlines that its primary source of revenue and net income is the retail of pre-owned vehicles, sales of parts and motor vehicle servicing
The company had volume of vehicle sales of over 700 units in 2019, with a large percentage of sales repeat purchases from customers.
The company has acquired space in the special economic Zone at Tinson Pen aerodrome, which it expects will ease the process of importation while simultaneously enabling it to pursue other ventures and providing access to a wider variety and volume of vehicles.