Summary of Consolidated Financial Results for the 3rd Quarter of Fiscal Year Ending February 28, 2019 (Updated January 11, 2019)
◆IDOM- The number of retail cars sold decreased
The number of retail cars sold at directly managed stores was 93,874, up 0.8% year on year.
Changes in pricing structure and sales strategy affected per store retail sales units and per unit gross profits to underperform the previous year’s and resulted in the accumulated operating profits to fall. The year on year decline rates in Q3 was lessened than in the Q1 and Q2.
◆IDOM- SG&A expenses
Selling, general and administrative expenses increased accompanying an increase in the number of stores. The advertising expenditures for purchasing business declined year on year.
◆Western Australian subsidiaries
While the Western Australian new car market remains sluggish, consolidated subsidiary Buick Holdings (DVG) showed improved results compared to last year attributable to the increase in sales units. The Group acquired a Melbourne-based new car dealerships in October 2018. At the end of Q3, only the balance sheets were consolidated (no impacts on the consolidated Q3 results except the costs incurred in relation to the acquisition).