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Egypt's GB Auto 2011 performs within expectations

Country's only listed car-maker reports a dip in annual sales but says volume is recovering quickly after the revolution, up 72 per cent quarter-on-quarter

Ahram Online, Tuesday 12 Jul 2011
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GB Auto, Egypt's only listed car manufacturer, has released details of its sales volumes for the second quarter of 2011 showing a 16 per cent decline year-on-year in personal car sales in Egypt. But it also reported impressive quarter-on-quarter growth of 72 per cent, suggesting it is weathering the country's economic turmoil better than expected.

Sales of motorcycle and three-wheeler (tuk-tuk) also showed growth of 64 per cent year-on-year and 27 per cent quarter-on-quarter. Sales to Iraq customers also showed growth over both periods.

Beltone Financial, a leading investment bank based in Cairo, predicts strong Q2 revenues for GB of up to LE1.7 billion based on initial performance indicators. Net profit should reach LE40 million, translating to a net profit margin of around 2.4 per cent, it says.

The investment bank also foresees steady growth in sales volume contunuing until the end of 2011. But two possible obstacles were cited as hindering 2011 profits: abnormal provisioning and FX losses.

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