C&C Bintang returns to the black in 2Q as revenue jumps on stronger sales

KUALA LUMPUR (July 25): Cycle & Carriage Bintang Bhd (C&C) returned to the black in the second quarter ended June 30, 2022 (2QFY22) with a net profit of RM6.48 million versus a net loss of RM1.8 million a year ago, as it recorded higher sales following demand for consumer vehicles being boosted by the sales tax exemption given under the PENJANA economic package.

The Mercedes Benz dealer's revenue for 2QFY22 rose 32.56% to RM320.58 million from RM241.84 million a year prior, its bourse filing showed.

For the six months ended June 30, 2022 (6MFY22), C&C Bintang posted a net profit of RM15.03 million, over nine times the RM1.6 million it achieved in the same period last year. Cumulative revenue grew 16.07% to RM620.6 million from RM534.67 million.

It attributed the increase in revenue mainly to a 14% increase in vehicle unit sales and an increase in the aftersales volume by 19% as a result of the removal of all prior movement restrictions.

On prospects, C&C Bintang chairman Wilfrid Foo said market recovery and consumer sentiment remain uncertain, and that the imbalance in global supply and demand is not expected to be fully resolved in 2022 and 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 added.

Shares in C&C Bintang ended unchanged at RM2.68 on Monday, giving the group a market capitalisation of RM270 million.