Jetcon reports $44 million profit in Q1
Jetcon Corporation, dealers of pre-owned cars, delivered a 21 percent increase in first-quarter profit to $44.5 million versus $37 million in 2017.
Jetcon enjoyed another quarter of growth in revenues and profit for the first quarter ended March of this year compared with the similar quarter in 2017.
"The performance continues the improvement experienced over the last two years," said the company.
What's more, the outlook also remains strong with sales for the period after the quarter, ahead by 12 percent year on year.
“This points to positive outcome for the June quarter, barring any unfavourable developments,” said Jetcon.
Revenues grew 18 percent to $308 million compared to 75 percent in the first quarter ending March 2017.
The growth for the quarter was in line with the increase in the December 2017 quarter, and slightly lower than the September quarter of 24 percent increase, as well as the June 2017 quarter of 52 percent, said the company.
Jetcon enjoyed a slight growth in gross margin during the quarter.
The inventory of motor vehicles and parts increased by 14.2 percent since March 2017, to reach $335.6 million. This represented a continuing strategy to increase choice for customers and sales.
Total receivables amounted to $22 million and include amounts deposited with suppliers for goods.
The implementation of the pre-inspection initiative for the importation of all used cars has lengthened the delivery time for vehicles by a few weeks, but Jetcon does not expect any adverse effects on sales, as any delays in shipment are covered by current levels of inventory.
Jetcon also sees opportunities to supply other dealers with stock, whose inventory may not be sufficient to outlast the delays.
Jetcon will host its annual General Meeting on June 26 at the Knutsford Court Hotel in Kingston.
The directors have also approved a dividend of 3.5 cents per share payable in July.