Cambodia Investment Review
RMA Cambodia (RMAC) has announced strong financial results for the year 2022, with a 54% increase in annual revenue from $399.83 million in 2021 to $539.08 million in 2022, and an after-tax profit from $38.68 million to $59.59 million over the same period. The company’s success has been attributed to its market-leading Ford product, which remained the top-selling non-luxury new vehicle in Cambodia throughout the year.
Read more: RMA Cambodia earns $38.6M in profit for 2021
In addition to its success in the automobile industry, RMAC is a diversified company representing world-class brands such as Jaguar Land Rover, Changan, Fuso, John Deere, JCB, and Piaggio. The company’s Q4 results were particularly strong, with earned revenue of $162.39 million, an increase of over 80% compared to the same quarter in the previous year, and a Q4 profit of $15.19 million, an increase of around 80% compared to the fourth quarter of 2021.
Economy starting to show signs of slowing
RMAC Chairman Kevin Whitcraft stated that the Cambodian economy was quite vigorous in Q4 2022, but was starting to show signs of the impacts of rising interest rates. Banks were more hesitant in lending to consumers, which dipped confidence on the spending side. Despite this, on a full-year basis, the estimated growth for the Kingdom of Cambodia’s economy should be around +4.5%, with a low Public Debt to GDP ratio of around 34%, and the export sector growing by 16.7% compared to 2021. Statistics on inflation indicate a +7% inflation figure.
RMAC delivered its two strongest quarters of 2022 in Q4, with sales growing by more than 80% compared to the same quarter in the previous year. During the period, Jaguar Land Rover, one of RMAC’s divisions, launched the very exciting All-New Range Rover Sport and the Defender 130. These two models are expected to get significant attention from existing and new Jaguar Land Rover customers. Ford, RMAC’s leading division, launched the AB-New Ford Temtory, which should rapidly become a successful model in the SUV category.
Long-term focus on tech, fuel and safety
RMAC’s long-term objectives are to meet Cambodian consumers’ needs by launching exciting new products with a specific focus on technology, lower fuel consumption, and a constant view toward safety. In addition to its business strategy, RMAC is also committed to corporate social responsibility. The company donated dustbins in the province of Shanovite and invested in renowned institutes in Cambodia to contribute to students’ technical knowledge.
RMAC’s success in 2022 was driven by strong customer demand for its key franchises, including Ford, John Deere, and Jaguar Land Rover. Although inventory shortages have eased on some models, there is still a global shortage of some key components such as microchips, negatively impacting the automobile industry. RMAC is closely monitoring its sourcing pipeline for each division but may face some product shortages in the following quarters.
In April 2020, RMA Cambodia listed a KHR 80 billion (approximately USD 20 million), 5-year amortized bond with a coupon rate of 5.5% per annum on the Cambodia Securities Exchange (“CSX”), marking the first bond issuance in RMA Cambodia’s history. The RMAC Bond is 100% guaranteed by the Credit Guarantee and Investment Facility (“CGIF”), a trust fund of the Asian Development Bank. It is also registered under the Asian Bond Market Initiative.
RMAC’s strong financial results for 2022 demonstrate the company’s commitment to providing world-class products and services to Cambodian consumers while also contributing to the country’s economic growth and development.
