Egypt's leading carmaker GB Auto saw 34% rise in 2015 profits

Ahram Online , Wednesday 16 Mar 2016

GB Auto in Cairo
A man works in an assembly line of Hyundai cars in Egypt's biggest car assembler GB Auto in Cairo September 10, 2013.(Reuters)

Egypt's leading automotive assembler and distributor Ghabbour Auto (GB Auto) saw a 34 percent rise in its net profits for 2015 to EGP 233.1 million, up from EGP 174 million in the year before, the company said on its website.

The company's revenues slightly declined to EGP 12.26 billion in 2015, down from EGP 12.3 billion.

“2015 is the first year to see GB Auto post a drop in its top-line since its IPO in 2007. However, the company’s performance this past year has been impressive, given current circumstances – especially the foreign currency shortage in Egypt,” said GB Auto Chief Executive Officer, Raouf Ghabbour.

Egypt has been struggling with an acute foreign currency crunch as the political upheavals in the aftermath of the 2011 uprising drove away investors and tourists, sources of hard currency.

"Following yesterday’s 14.3% devaluation of the EGP by the CBE, a very bold move in our opinion, we believe that foreign currency policy is on the right track and that the FX shortage will soon be behind us,” said Ghabbour.

The central bank has devalued the pound to 8.85 for a dollar on Monday as part of a plan to ultimately adopt a more flexible exchange rate.

The company's passenger car division saw revenues fall 15 percent to EGP 7.5 billion in 2015 down from EGP 8.9 billion the prior year.

Revenues from the motorcycles and three wheeler business line increased 50 percent to EGP 2 billion.

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