Automotive, agriculture and heavy equipment-distributor RMA (Cambodia) has posted a 24.3% growth in the first-quarter net profit to $12.1 million compared to the same period last year.
The increase was due to a rise in total revenue by 13.8% to $118.8 million driven by more consumer demand of its major Ford brand automobiles. The company also reduced its tax bill by -17.4% to $2.5 million mainly due to tax incentives after listing corporate bonds on the local securities exchange last year.
RMA (Cambodia) is a subsidiary of Clipper Holdings Limited, the parent company of the RMA Group, which has its regional operating headquarters in Bangkok, Thailand.
It is the distributor and provider of warranty and after-sales service for world-leading brands including Ford, Jaguar Land Rover, John Deere, TCM, JCB, FUSO, and Piaggio. The Ford brand comprised more than 87% of revenue for the company this quarter.
The Ford brand has increased its market dominance this quarter by grabbing a market share of 42.17% for new vehicles compared with 36.5% in the same period last year.
The Ford Ranger continues to be the number one selling vehicle in the new vehicle market in Cambodia.
“During the first quarter, RMAC business has only been slightly impacted. Sales are up by +14% vs the same period last year demonstrating the strong appetite for our key products essentially in the automobile and agricultural equipment, respectively from Ford and John Deere brands”, Chairman Kevin Whitcraft stated.
“The company has continued to launch products adapted to our Cambodian consumers’ needs with a specific focus on technology, lower fuel consumption, and with a constant view towards the safety of our customers in the products we sell. A great example of this is in the launch of the All-New Ford Territory.”
In April last year, the company listed its first corporate bond on the local exchange (CSX: RMAC25A) has was awarded “the best local currency bond” in Cambodia by the Assets Asian Awards 2020.
The award stated it was the first time that Credit Guarantee and Investment Facility (CGIF) status had been provided to a corporate bond in Cambodia as well as the first time that a non-financial institution has raised financing in the Cambodian capital market.
The issuance of 800,000 bonds at 100,000 riels each raised 80 billion riels ($20 million). The five-year amortized bond has a coupon rate of 5.5% per annum.