Profit up 86% for September quarter J$12 million
Jamaican pre-owned car dealership, Jetcon Corporation has seen a strong rebound in fortunes during the first half of this year, with both profits and revenues surging.
Net profits for the half year have surged by 110 per cent to J$26 million, while profit for the September third quarter was strong, rising by 86 per cent from J$6 million in 2021 to J$12 million in 2022. Revenues ended the third quarter of 2022, increasing by 52 per cent to J$300 million, compared with the
same period in 2021.
Revenues for the combined three quarters of 2022 are up 33 per cent to J$806 million. The management has explained that these figures are more in line with pre-pandemic levels of performance.
Vehicles sold below normal margins
A number of vehicles were sold below normal margins, resulting in cost of sales again rising a bit faster in the third quarter than sales at 55 per cent versus sales increase of 52 per cent. Cost of sales year-to-date were in line with revenues – both up 33 per cent.
October sales continued a strong upward trend, evidenced since August, well above last year’s sales in dollar figures. The management is expecting this trend to continue on a positive path for the remainder
of the year.
With total inventories at J$448 million, Jetcon has an adequate supply of vehicles and its stock of electric vehicles (EVs) is expanding to include multiple brands. The company has also diversified into solar,
tentatively distributing solar panels, which has been fruitful so far.
Although the Bank of Jamaica has increased interest rates, Jetcon has not seen any noticeable impact on demand. However, this is a development the management will continue to monitor, noting that although Jetcon has a robust inventory of vehicles in stock, it is well placed to meet demand if it continues.
The Andrew Jackson-led management team has indicated that it will not be heavily indebted in order to meet demand should the need arise. The company also held its annual general meeting earlier this month, which had a fair attendance by shareholders and news outlets.