Acer Australia's profit and revenue on a downward trend in FY19

After-tax profit and revenue both decreased during the financial year to AU$2 million and AU$286 million respectively.
Written by Aimee Chanthadavong, Contributor and  Staff Writer, Contributor

Acer Australia has reported after-tax profit of AU$2 million, down from AU$2.7 million a year prior, for the financial year ending 31 December 2019.

Acer Australia's revenue was also down 7% year-on-year from AU$307 million to AU$286 million for the full year. 

This was partly due to a small decline in sales of goods from AU$278 million last year to AU$256 million for this financial year, as well as a slight increase in costs associated with rendering of services that came to AU$30.4 million, up from AU$29.8 million in FY18.

Earnings before interest, tax, depreciation, and amortisation (EBDITA) came in at AU$2.88 million, a slight drop from AU$3.9 million reported during the last financial year.

Income tax paid was AU$952,000, versus the AU$1.27 million paid last year.

Acer Australia highlighted that during the financial year, business activities were mainly associated with the distribution of computer hardware and the provision of related services.

The company's controlled entity, Highpoint Australia, however, did not trade during the financial year, the company said.

While Acer Australia did not report how many staff it has, it did note that employee expenses for the 2019 financial year was AU$2.68 million, up from AU$2.61 million.

Acer used the financial report to also highlight that it expects business in 2020 will be impacted by the coronavirus pandemic.

"Due to the uncertainty of the outcome of this situation it is not possible to predict the full impact on the company," Acer Australia said.

The impact of the coronavirus has been already been felt by the Taiwanese parent company, Acer Inc. 

Revenue for January was NT$13.6 billion, down 18.6% year-on-year. Similar results were recorded in February where revenue was down again by another 22.4% year-on-year to NT$11.2 billion.

More recently, however, Acer said revenue bounced back slightly, growing 2.2% year-on-year to NT$24 billion.

"In March, Acer's supply chain recovered strongly following the Chinese New Year holidays and impacts brought by the new coronavirus pandemic. The month of March also saw an upswing in market demand due to work-from-home and online learning needs," the company reported.

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