by S BIRRUNTHA / pic HUSSIEN SHAHARUDDIN
CYCLE & Carriage Bintang Bhd (C&C Bintang) returned to the black in the second quarter ended June 30, 2022 (2Q22), with a net profit of RM6.48 million versus a net loss of RM1.8 million a year ago.
The Mercedes Benz dealer attributed the strong earnings for the quarter to higher sales due to the extension of sales tax reduction under the Penjana (National Economic Recovery Plan) scheme which ended on June 30, 2022.
The group’s revenue rose 32.56% to RM320.58 million in 2Q22 from RM241.84 million last year, according to its filing to Bursa Malaysia yesterday.
The group also registered an earnings per share of 6.43 sen for the period, against a loss per share of 1.78 sen previously.
For the six months ended June 30, 2022, C&C Bintang posted a higher net profit of RM15.03 million from RM1.6 million last year, as it benefitted from the sales tax reduction which supported the demand for consumer vehicles in the first half of the year.
Revenue for the six months also rose 16.07% to RM620.6 million compared to RM534.67 million in 2Q21, mainly attributed to a 14% increase in vehicle unit sales and an increase in the after-sales volume by 19% as a result of the removal of all prior movement restrictions.
Meanwhile, C&C Bintang noted that the group’s net debt improved from RM30.6 million at the end of 2021 to net cash of RM35.6 million as at June 30, 2022, due to healthy cashflow.
“The group continues to monitor its debt and liquidity positions to mitigate both operational and financial risks,” it said.
On prospects, C&C Bintang chairman Wilfrid Foo said trading conditions are expected to remain challenging for the rest of the year, with reduced inventory of new cars due to the global semiconductor chip shortage.
He also highlighted that market recovery and consumer sentiment remain uncertain.
“In addition, it is expected that the imbalance in global demand and supply will not be fully resolved in 2022, which will continue to impact the automotive industry.
“The group takes a long-term view on its strategic goals, focusing on bolstering its capabilities to bring exceptional journeys to customers and employees, while staying on track and agile with its business improvement plans,” he said.
C&C Bintang and its subsidiaries is one of the leading Mercedes-Benz dealers in Malaysia with a network of 11 outlets, providing sales and after-sales services for Mercedes-Benz passenger cars and commercial vehicles.
In addition, the group also provides sales and after-sales services for Mitsubishi Fuso trucks.