Cairo - Mubasher: GB Auto, a leading automotive assembler and distributor in the Middle East and North Africa, said it reported historical growth figures in terms of both profitability and market share for the second quarter of 2016, as it reached a high of 45% in April 2016.
The company’s top line for Q2-2016 grew by 22.6% to reach EGP 3,928.8 million, while net income increased by 1.5x to EGP 124.4 million from EGP 50.3 million in the comparable period last year. Net profit margin climbed 1.6 BP to 3.2%.
GB Auto’s strong top- and bottom-line performance in the second quarter owe significantly to Management’s exceptional decision to deploy all of its available liquidity to ensure the company had sufficient inventory on hand to meet market demand, said the company's press release.
This decision was the decisive factor in the company’s Q2-2016 market share gain, as GB Auto had stocks of in-demand models on hand at a time when competitors were under exceptional foreign exchange pressure and accordingly unable to supply the market.
Despite weakening market demand and lower sales volumes, revenues from GB Auto’s Passenger Cars division increased on both a three- and six-month basis, rising by 31.5% and 18.1% y-o-y in Q2-2016 and H1-2016, respectively.
On the regional level, Algeria’s challenging regulatory climate continued to affect the company's operations in the country. Yet, while sales volumes and revenues from the country declined, After-Sales operations were able to partially offset the loss and posted revenues that were 28.0% higher y-o-y.
In Iraq, political turmoil continued to pressure business and economic activity. However, GB Auto’s performance during the second quarter of 2016 showed significant improvement over Q1, with revenues from Passenger Car sales in Iraq increasing by 65.0% Q-O-Q.
for the foreseeable future, GB Auto intends to continue operating cautiously in its regional markets, keeping an eye on its costs as well as new opportunities to transform its businesses.
“The second quarter of 2016 was GB Auto’s strongest since the 2011 revolution, and one that I feel truly demonstrates the strength of our organization and the competence of our strategy,” said GB Auto Chief Executive Officer, Raouf Ghabbour.
