Jamaican dealership Jetcon Corporation has seen a dip in motor vehicle sales during the March first quarter, which was a challenging one for the company.
The junior market-listed company says the fall-off in motor vehicles sales for the first quarter has continued into the month of April. However, the management says it is seeing certain positive development with monthly sales increasing month over month for 2023.
Revenues are down 29 per cent compared to the first quarter in 2022. Gross profits fell by 35 per cent, while net profits decreased from J$10.2 million to a small loss of J$1.8 million.
Vehicle, shipping prices stabilising
While prices of vehicles and shipping have stabilised somewhat, the Andrew Jackson-led management team is reporting that the “increase in interest rates have stifled motor vehicle sales, however with the reduction of inflation and a fall in interest rates on Bank of Jamaica CDs (Certificates of Deposit) and Government of Jamaica Treasury bill rates augur well for interest rates returning to more normal levels soon. We expect sales to recover as the year progresses.”
Jetcon has sold the majority of its stock of electric vehicles (EVs) and expanded its range to include another brand of EV and have more developments in the pipeline, which will be disclosed when they become more concrete.
Delay in 2022 audit report
In the meantime, the company is reporting that its 2022 audit report will be delayed adding that its board of directors decided to release its March first quarter results while awaiting the audit of the 2022 full year results. The management says the final results is not expected to deviate materially from the figures shown for 2022 in the interim results.
In concluding the management explained, “the delay in releasing the audited 2022 results is regretted and it is expected that they will be released by June. In the meantime, the interim results should help investors to get a better picture of developments within the company. “