Customers working remotely slashes Toshiba Australia's FY21 profit optimism
For its 2020 financial year, Toshiba Australia has walked away with a loss of AU$316,000, an improvement on the 2019 loss of AU$2.2 million. Prior to paying an AU$899,000 tax bill, pre-tax profit for the local arm of the Japanese conglomerate was AU$583,000.
Its 2020 tax bill comprised of AU$148,000 in current tax and AU$1.45 million in deferred tax, with a AU$714,000 tax adjustment from prior years.
In the year to 31 March 2020, Toshiba produced total revenue of AU$134 million.
While the company's 2020 year was an improvement on 2019, Toshiba Australia is less than optimistic about 2021.
In a filing to the Australian Securities and Investments Commission, Toshiba said that following the COVID-19 outbreak, the company has continued with the distribution and servicing of electronic imaging devices with minimal disruption. It said, as a result, there has not been a significant impact on the company.
"However, the situation is unprecedented, and measures have been put in place by both the Australian government as well as governments around the globe," the company wrote.
"As of the date of these financial statements were authorised, some level of disruptions to some parts of the operations have been experienced as a result of social distancing measures and restrictions which negatively impacted sales activities and customer accounts receivable collections of the company."
Toshiba said customer orders have been either delayed or cancelled and services revenue has declined as a result of working from home measures adopted by customers.
Overall, the company said it has experienced a decrease in sales and associated costs of around 40% in the months since 31 March 2020.
"The magnitude of the impacts, particularly over the near to medium term, will depend on the duration and extent of the COVID-19 pandemic and the impact of government actions and consumer behaviour in response to the pandemic," it added.
For its 2020 year, Toshiba boasted 337 employees. It said many were able to work from home to comply with local government orders.
In 2019, the company had 384 staff on its books in Australia.
Toshiba said it also applied for the federal government's JopKeeper support and has been in receipt of benefits since April 2020.
In addition, the company said it has been able to ensure the availability of its supply chain of products, noting it has not been materially affected by COVID-19.
During the year, the principal continuing activities of the company consisted of the importation and distribution of Toshiba electronic imaging devices. Toshiba Australia's ultimate parent entity is Toshiba Corporation, incorporated in Japan.