Jetcon investment in inventory drives up sales, profit
The double-digit growth in sales at Jetcon Corporation quadrupled earnings at the auto trader for the September third quarter.
Net profit grew from $9 million, or six cents per share to $35 million, or 18 cents per share, in the quarter. Sales nearly doubled from $143 million to $267 million.
"The improvement is due to increased exposure received from the listing of the company shares, as well as the additional capital that allowed for funding of an increase in inventory and a wider variety of motor vehicles," said Chairman John Jackson and Managing Director Andrew Jackson in a statement published with the earnings report.
"Attractive financing conditions and an increase in economic activity seems to be playing a role as well," the directors said.
Jetcon became a publicly listed company trading on the junior stock market in March of this year. It trades in pre-owned vehicles from its base in Kingston.
The sales outlook for the final quarter heading into the Christmas season - which traditionally produces good business - remains positive. It should result in positive results for the December quarter, the auto trader said.
Jetcon's inventory rose to $236 million from $128 million a year ago due to a decision to expand the available choices for customers. Payables nearly tripled, rising to $85 million from $32 million at September 2015, owing mainly to amounts due on the purchase of motor vehicles that were in transit to Jamaica.
Over nine months ending September, the company cared $66 million in net profit from revenue of $610 million. In the comparative 2015 period, nine-month sales topped $379 million and profit $27 million.