Garmin Australasia’s Profits Up 16% In 2019
In 2019 Garmin Australasia’s sales revenue grew by 9.9% to total $193.5 million, while gross profit increased by 16% to reach $39.5 million. The costs of goods sold rose at a slightly lower rate, up 8.3% in 2019 at $154 million.
This builds upon the solid growth of 2018, when gross profits increased by 18.8% to $34.4 million, and sales revenue grew by 15.7%.
Alongside this expansion, Garmin has also upped its spending on marketing, up 7.2% in 2019 at $8.3 million.
On an international scale, Garmin’s global gross profit grew more moderately than in Australia and New Zealand, expanding by 12.8% in 2019 to total $2.2 billion. Global sales revenue, meanwhile, increased by 12.2% to $3.8 billion.
While these figures refer to the year ended 31st December 2019, after the COVID-19 crisis hit Australia, Garmin Australasia stated that while business has not been significantly impacted, the pandemic will affect their earnings, cash flow and financial condition.
“It is not possible to estimate the impact of the outbreak’s near-term and longer effects or Governments’ varying efforts to combat the outbreak and support businesses. This being the case, we do not consider it practicable to provide a quantitative or qualitative estimate of the potential impact of the potential impact of this outbreak on the company at this time,” Garmin Australasia stated.
In Q1 2020 Garmin’s global revenue grew by $856 million, led by demand for wearables.