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Toshiba posts AU & NZ financial results with modest profit & loss

07 Sep 2020

Toshiba has recently published its annual reports for its Australian and New Zealand operations for the year ended 31 March 2020.

Toshiba Australia posted $125.5 million revenue, down from $128.8 million in 2019. After cost of goods sales, cost of services provision, and expenses, the company posted a profit of $583,000. After income tax of $899,000, the company posted a loss of $316,000.

The company has also been affected by COVID-19. The company states, “Overall the Company has experienced a decrease in sales (and associated costs) of around 40% in certain months since 31 March 2020.”

“The Company applied for Jobkeeper allowance from the Australian Government and has received this financial assistance since April 2020, which has assisted to minimise the impact of COVID-19.”

“However, the situation is unprecedented and the Company will continue to pay close attention to the potential implications of the pandemic and the impact on operations, which may include disruptions to the supply chain, availability of employees, changes in customer demand, as well as to evaluate the impact on its financial position, operating results and cash flows of the Company. As at the date these financial statements were authorised, the Company was not aware of any material adverse effects on the financial statements as a result of the coronavirus.”

Toshiba New Zealand posted NZ$11.2 million revenue, down just $37,000 from its 2019 revenue figure. After cost of sales, the company reported a gross profit of $4.9 million, an $81,000 increase from 2019. The company’s expenses included sales, general and administration ($4.8 million), finance costs ($31,129), and tax ($50,082), leaving the company with a $73,845 profit for the year.

The company states that it has felt the impact of COVID-19.

“Overall the branch has experienced a decrease in sales (and associated costs) of around 50% in certain months since 31 March 2020. The Branch applied for Jobkeeper allowance from the New Zealand Government and has received this financial assistance since April 2020, which has assisted to minimise the impact of COVID-19.”

“The Branch has been working closely with its customers to monitor its cash flow and to date, there has been no increase in delinquency in customer collections, apart from deferral requests which the Branch has been able to accommodate in the short term. There have been no known cases of customers collection issues since the end of the financial year. Receivables are continually reviewed to ensure the situation does not deteriorate. There has been no indication of a need to increase bad debt provisioning to date.”

Figures in this story have been rounded.