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DRIVING IT UP
STAMFORD TYRES CORPORATION LIMITED
T
he Group faced a
challenging business
environment in FY2016
due to an oversupply
of tyres globally as well
as the continued strengthening
of the US Dollar and Singapore
Dollar against domicile currencies
in our key markets, particularly in
South East Asia and South Africa.
For the financial year ended 30
April 2016, the Group’s revenue
was S$239.9 million compared
to S$292.5 million last year.
Revenue derived from the
distribution of tyres and wheels
accounted for 88% of total
revenue and manufacturing of
wheels accounted for 12%. By
geography, South East Asia
continued to be the core market
for the Group, accounting for 85%
of the Group’s revenue.
Demand for major brand tyres
that the Group distributes, namely
Falken, Dunlop, Continental and
Maxam, remained strong. Sumo
Firenza proprietary brand tyres
and SSWproprietary brand wheels
continued to enjoy stable demand
in South East Asia, particularly in
Singapore, Malaysia, Indonesia and
Thailand.
Gross profit for the Group was
lower at S$59.1 million compared
to S$64.5 million last year. Gross
profit margin increased from 22.1%
last year to 24.7% in FY16, mainly
attributable to lower cost of sales
and contribution from value-
added activities at Stamford Tyres
Mart retail chain and truck tyre
centres.
Operating expenses decreased by
6.1% to S$58.2 million compared
to S$62.0 million last year due to
lower marketing and distribution
costs, salaries and foreign exchange
costs. This was offset by higher
finance costs and higher allowance
for doubtful debts.
The share of results of joint
ventures amounted to a net profit
of S$1.8 million, compared to a
net profit of S$0.1 million last year,
Financial and
Operations Review
South East Asia
continued to be the
core market for the
Group, accounting
for 85% of the
Group’s revenue.
April 2016: Mr Satoru Yamamoto’s
(Director, Senior Executive Officer and GM of Asia Pacific Regional Headquarters, Sumitomo Rubber Industries)
1st Visit to Stamford Tyres Headquarters in Singapore
3
rd
From Left:
Wu Xiao Ning (Manager, Sumitomo Rubber Asia), Cham Soon Kian (Executive Vice President, CEO of Malaysia, Stamford Tyres), Satoru Ushida
(Managing Director, Sumitomo Rubber Asia), Hidekazu Nishiguchi (Executive Officer and GM of Overseas Tire Sales HQ, Sumitomo Rubber Industries), Wee Kok
Wah (President, Stamford Tyres), Mr Yamamoto, Colin Choo (SVP, Head of Thailand Operations, Stamford Tyres), together with key members of the Stamford Tyres
team
