EuroSports full-year net loss widens on lower margins, higher expenses

SINGAPORE (May 27): Full-year loses for EuroSports Global, the authorised dealership of Lamborghini supercars in Singapore, widened by 11.8% to $4.5 million from $4.02 million a year ago, dragged down by lower gross profit margins and higher group-wide operating expenses.

Revenue rose 57.4% to $63.53 million from a year ago, lifted by higher sales across all three business segments. Revenue from the sale of cars soared 64.8% to $55.24 million mainly due to more than twice as many new Lamborghinis sold at 31 cars. Also supporting this growth was a $11.1 million increase in sales of pre-owned automobiles due to full-year contribution by the group’s subsidiary, AutoInc EuroSports, which it acquired in 2014. The group’s after-sales services business recorded a 10% increase in revenue to $6.05 million too, corresponding to the higher number of cars sold.

Although group gross profit rose 10.5% to $8.13 million, because of a decrease in gross profit margin from sales of new and pre-owned cars to 9.3% in FY16 from 12.8% a year ago, overall gross profit margin was trimmed by 5.2 percentage points to 12.8% in FY16 from 18.2% a year ago.

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