Friday 29 Mar 2024
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KUALA LUMPUR (April 24): A significant fall in sales saw Mercedes-Benz dealer Cycle & Carriage Bintang Bhd’s (CCB) first quarter net loss more than double to RM9.7 million from RM4.36 million a year earlier.

CCB said revenue for the quarter ended March 31, 2020 fell 26.35% to RM215.91 million from RM293.18 million previously, as sales in vehicle units dropped 29% while after sales volume declined 11%.

In a filing with Bursa Malaysia, the group blamed the poor sales to softening demand in the premium luxury segment of the automotive industry.

CCB chairman Eric Chan said the group’s performance was also hit by the effect of the Movement Control Order, implemented with effect from March 18 in response to the COVID-19 pandemic.

“Markets will remain challenging for the rest of the year, with both volume and margins expected to be lower as a result of the compounding effect of the virus on an already subdued economic environment," Chan said.

In terms of CCB’s balance sheet, the group’s net debt increased slightly to RM213.9 million from RM201.8 million registered at the end of 2019.

The group said its debt level and liquidity position is being carefully monitored and steps are being taken to mitigate both operational and financial risks.

“A range of actions are also being taken to manage costs and preserve cash, including deferring certain capital expenditure and managing working capital,” it added.

Shares in CCB closed 2 sen or 1.4% down at RM1.36, giving the group a market capitalisation of RM137 million.

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