Saturday 23 February 2019

Egypt’s GB Auto Q3 net profit up 90pc

CAIRO, November 12, 2015

Egyptian auto distributor GB Auto said on Wednesday its third-quarter net profit jumped nearly 90 per cent compared to a year earlier despite foreign currency shortages that have strained operations.

GB Auto's third quarter net profit rose to 102.6 million Egyptian pounds ($13.1 million), from 54 million in the same period last year, the company said.

Revenue climbed by 2.9 per cent to 3.17 billion pounds, from 3.08 billion a year earlier.

GB Auto, Egypt's largest listed auto assembler and distributor and the country's distributor of tuk-tuks and motorbikes made by India's Bajaj, has been affected by a currency crisis that has made importing more difficult.

Egypt has been grappling with a foreign currency shortage that has crippled import activity and hurt foreign investment as the country tries to rebuild its economy.

Increased demand in the Egyptian market during the third quarter however helped offset some of the negative effects of the currency crisis, the company said.

"It was only later in the quarter that we began grappling with this ongoing nationwide shortage of foreign currency," said GB Auto CEO Raouf Ghabbour.

Production at some of the firm's factories was halted for 20 days during September and October due to delays in supplies.

"Management expects the full impact of the foreign currency bottleneck to be reflected on 4Q15 sales volumes, however, incremental price increases will be introduced to the market over the next quarter," a company statement said. – Reuters

Tags: Egypt | Net Profit | GB Auto |

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