Car dealer Idom’s sales and profit hit record highs during the first quarter of 2022 as consumer demand rebounded from last year’s coronavirus slowdown.
Overall, Idom saw sales increase 40% to Y117 billion ($1 billion). Operating profit amounted to Y5 billion ($46 million) compared to an operating loss of Y153 million ($1.4 million) in the same period of the previous year. The company also recorded net profit of Y2.7 billion ($25 million) in Q1 compared to net loss of Y914 million ($8.3 million) during the same period previous year.
Founded in 1994, offline-to-online Idom (TSE: 7599) runs c-to-c car-sharing app Go2Go.jp, car subscription site Norel.jp and auto marketplaces Gulliver and GulliverFrima. The group has more than 500 stores in Japan, its primary market. The company also operates in the U.S. as Gulliver USA and in Australia through its majority stake in automotive company DVG.
Sales from Japan were recorded at Y82.4 billion ($754 million) in the March-May period, up 21% year-on-year. Operating profit amounted to Y3.9 billion ($36 million) compared to operating loss of Y136 million ($1.2 million) in the comparable period.
As visitors return to stores, retail sales of used-cars are increasing, according to Idom’s earnings announcement. Like many other businesses, Idom suffered from a decline in sales due to the coronavirus pandemic early last year.
According to the company, “efforts were made to boost the number of visitors to existing stores, including large stores, through the effective placement of advertisements.”
Sales from Australia rose 124% to Y34 billion ($311 million) and operating income grew 577% to Y1.2 billion ($11 million) as sales of used and new cars increased. Yen depreciation against the Australian dollar also strengthened sales and profit numbers.