Gross profit was $15.7 million in 1Q18 compared to $14.8 million in 1Q17. Gross profit margin increased to 26.7% from 25.4% a year ago, mainly led by value-added activities at the group’s Stamford Tyres Mart retail chain and truck tyre centres.
Total operating expenses increased by 6.6% to $14.4 million compared to $13.5 million mainly due to higher operating lease rentals and higher forex costs.
Share of profits from joint ventures was flat at $0.6 million.
Stamford Tyres says the economic outlook continues to remain uncertain. As a result, the operating environment will continue to be challenging.
To mitigate the impact of this challenging environment, the group will continue to optimise its product mix, manage operating costs and build on its core markets in South East Asia.
Shares in Stamford Tyres closed at 34 cents.
