JOINT LETTER TO
OUR SHAREHOLDERS
DEAR
SHAREHOLDERS ,
The past two years have been difficult and challenging
for the car dealership industry, which continued to be
affected by government policies that put a curb on car
loans and introduced an unfavourable progressive tax
structure.
As the sole and exclusive dealer for several high
end marques such as Lamborghini, Pagani, Touring
Superleggera and Alfa Romeo, EuroSports Global was
not spared in the slowdown in car registrations of
ultra-luxury models.
To drive sales of our products, we continued to
engage our customers in activities where they
could take their supercars out for a spin in a safe
and controlled environment and organised events
where they could network with other Lamborghini
enthusiasts and super car collectors. These included
track days in Malaysia and car club events, which
serve to keep our high performance brands at the
top of mind among our customers.
/ . 1 3
A N N U A L R E P O R T 2 0 1 5
T H E S T R E N G T H O F O U R B R A N D S
/ d e L a C o u r t i me p i e c e /
FY201 5
YEAR I N REV I EW
In August 2014, the Group completed the acquisition of a
subsidiary, namely AutoInc EuroSports Pte. Ltd. (“AutoInc
EuroSports”), which deals mainly in the sale of pre-owned
automobiles and the provision of after-sales services. As a
result of contribution from this new 60%-owned subsidiary,
we achieved higher sales of pre-owned automobiles
and also higher revenue from the provision of after-sales
services. This was very encouraging to us as it showed that
acquiring AutoInc EuroSports was the right move.
In line with the general industry performance, there were
fewer new Lamborghini automobiles sold (13 in FY2015 as
compared to 15 in FY2014). In addition, disappointing sales
achieved by our watch distributors caused revenue from
the sale of deLaCour watches to fall 57.1% year-on-year
(“yoy”).
Despite the challenging environment, the Group achieved
a modest 1.6% increase in overall sales revenue to S$40.4
million as compared to S$39.8 million achieved in the
previous financial year (“FY2014”) mainly because of higher
revenue achieved by our Sale of Automobiles segment.
Our gross profit margin fell 4.0 percentage points to 18.2%
in FY2015 from 22.2% in FY2014 because of higher sales of
pre-owned automobiles, which typically enjoy lower gross
“
TO DRIVE SALES OF OUR PRODUCTS, WE
CONTINUED TO ENGAGE OUR CUSTOMERS IN
ACTIVITIES WHERE THEY COULD TAKE THEIR
SUPERCARS OUT FOR A SPIN IN A SAFE AND
CONTROLLED ENVIRONMENT AND ORGANISED
EVENTS WHERE THEY COULD NETWORK WITH
OTHER LAMBORGHINI ENTHUSIASTS AND
SUPER CAR COLLECTORS.
”
