Profit of $5.7 million recorded in September quarter, compared with a $2 million loss

Jamaican pre-owned car dealership Jetcon Corporation has completed its third quarter in September with increased sales representing a turnaround from a loss last year.

This improved financial performance comes in spite of the effects of the several days of lockdowns in August, as a result of the spread of COVID-19 that disrupted operations and sales. The third quarter ended with a profit of $5.7 million, compared with a $2-million loss during the same period last year.

Revenues for the quarter climbed 28 per cent to $196 million, compared with $153 million for the similar period in 2020. Cost of Sales increased 29 per cent from $128 million in 2020 to $166 million in 2021, directly in line with the increase in sales.

283 per cent increase in profits for the nine-month period

For the nine months to September 2021, revenues jumped 30 per cent from $467 million in 2020 to $607 million this year and profit of $3 million reported to September 2020 climbed 283 percent to $11.5 million for the period in review.

The management reported that it has responded to the uptick in activity by increasing inventory, which is up 13 per cent from the same period in 2020 to $445 million, which includes spare parts and goods in transit. Payables are up from $32 million at the end of September 2020 to $110 million in September 2021.

This includes deposit for goods ordered but not yet delivered.

The management says “this was an effort to shore up stock before the effects of the price increases in supply materialised”.

In its outlook, Jetcon continues to enjoy a relatively strong financial position. With smart marketing and pricing strategies and with increasing vaccination rates and decreasing COVID case rates, the management said it hoped those restrictions would continue to ease, therefore helping to fuel the company’s recovery.

Sales going well for the fourth quarter of 2021

To date, sales for the fourth quarter are stronger still, with units sold in November at regular pre-pandemic levels and already exceeding sales for the third quarter. This upward swing continues into December and, with increased bookings to date, the directors of the company hope that Jetcon will be able to deliver a high number of vehicles before 2021 comes to an end.

The board has set January 25, 2022, as the date for the Annual General Meeting to consider the 2020 financial results. Jetcon Corporation has advised that during preparation of its third quarter report for 2021, some irregularities were uncovered, which necessitated revisions of the first and second quarter reports.

The predominant changes are in the Cost of Sales for the first quarter, although it should be noted that there are changes throughout both reports.