Rymco’s 2017 Profits Down to $4.88M in 2017

Rymco is the only Lebanese car importer to be listed on the Beirut Stock Exchange and imports the brands of Chery, Datsun, Nissan, GMC, Infiniti, Lada, Lotus, Renault Trucks and UD Trucks.

In 2017, Rymco was the second biggest car importer in Lebanon with a market share of 14.16%, second to NATCO, the importer of Kia which held a share of 19.12%.

Rymco’s income statement revealed a 16.57% decline in the profit for the year 2017 from $5.85M in 2016 to $4.88M in 2017. The company’s sales dropped by an annual 6.85% to $233.45M while the cost of sales slid by 7.77% yearly to $204.14M in 2017.

 While the cost of sales dropped slightly further than sales did, the profit for the year still dropped on account of a drop in other revenues, an increase in general and administrative expenses and higher advertising and selling expenses. Like other car importers in Lebanon, Rymco has been pouring efforts into advertising in an attempt to boost ailing demand. Advertising expenses grew by an annual 9.21% to $4.26M in 2017.

According to Rymco’s balance sheet for the year 2017, the company’s total assets declined by 14.39% Year-on-Year (YoY) to reach $175.97M. In fact, the decline in assets came on the back of declines in “Inventories” and “Cash and Banks” which dropped from $71.48M and $23.83M in 2016 to $52.45M and $8.39M in 2017, respectively.  Total Equity rose by an annual 6.16% to reach $56.96M in 2017.

Rymco’s Financial Highlights as of December 2017

In $ 2017 2016 YOY
Total Assets                        175,973,267                     205,558,194 -14.39%
Total Shareholders’ Equity                           56,958,547                       53,654,092 6.16%
Sales                        233,446,111                     250,607,946 -6.85%
Cost of Sales                        204,141,097                     221,332,149 -7.77%
Profit for the Year                             4,880,175                         5,849,140 -16.57%

Source: Rymco

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