HIGHER sales across South-east Asia helped mainboard-listed Stamford Tyres more than double its net profit to S$2.1 million for H1 ended October, from the S$696,000 profit in the year-ago period.

The tyre and wheel distributor’s H1 revenue was 10.2 per cent higher at S$97 million with the higher sales. However, this was partly offset by a 3.6 per cent rise in total operating expenses to S$26.1 million, as a result of higher costs for staff, marketing and distribution, finance expenses and foreign exchange.

Gross profit margin came in lower at 26.3 per cent for H1, compared to 27.6 per cent in the year-ago period. This was mainly due to the higher cost of producing tyres and wheels.

Founded in the 1930s, the company has distribution centres in Singapore, Malaysia, Thailand, Indonesia, Hong Kong, India, Australia, South Africa and Vietnam. Its core business is in distributing the tyres of brands including Falken and Dunlop. It also has its own proprietary brands Sumo Firenza, Sumo Tire and SSW Wheels.

Executive director Wee Li Ann noted that the global economic outlook remains challenging. To adapt, Stamford Tyres has implemented strategies to diversify its product offerings.

“We will continue to focus on growing our sales of car tyres and SSW Wheels, as well as truck tyres and mining tyres. We are also focusing on improving our sales productivity and upgrading value-added segments such as Stamford Tyres Mart retail chain and truck centres,” she said.

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Stamford Tyres has S$28.3 million in cash as at end-October, against S$86.7 million in borrowings. Its share price closed flat at S$0.183 on Wednesday (Dec 14).