Thursday 28 Mar 2024
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KUALA LUMPUR (April 23): Cycle & Carriage Bintang Bhd (C&C) recorded a wider net loss of RM4.36 million in its first quarter ended March 31, 2019, compared with a net loss of RM3.19 million a year ago on the back of lower sales and weaker margins.

Revenue for the quarter declined 24.5% to RM293.19 million versus RM388.58 million in the previous year’s corresponding quarter, as vehicle unit sales fell 30%, the group said in a stock exchange filing today.

“The group’s first quarter performance was negatively impacted by difficult trading conditions, which reduced both volumes and margins,” said C&C chairman Haslam Preeston.

Meanwhile, the Mercedes-Benz distributor's sales mix shifted to the lower-priced C, GLC and A-Class models from the E-class segment, it said.

Higher operating expenses and financing costs also hurt margins as the group continued to invest in its network operations, C&C added. However, its after-sales division performed satisfactorily.

“Markets are expected to remain challenging for the rest of the year, although there may be some positive impact from the launch of the new A-Class Sedan,” Preeston said.

Shares in C&C closed unchanged at RM1.50 today to give the auto dealer a market value of RM151.12 million.

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