Egyptian auto tycoon Raouf Ghabbour’s GB Auto posts $117.6 million in profits in 2021

Ghabbour Auto (GB Auto), an Egyptian automobile manufacturer led by one of the country’s leading executives, Raouf Ghabbour, has announced a double-digit increase in profit in 2021, as the group continued to capitalize on operational efficiency initiatives and leverage higher revenues driven by recovering demand for mobility and automobiles.

According to its financial statements, GB Auto’s net profit rose by 66.6 percent from EGP1.11 billion ($70.6 million) in 2020 to EGP1.85 billion ($117.6 million) at the end of 2021, reflecting strong performance and increased consumer demand across all the group’s business lines during the period.

The top automobile firm, which also serves as one of Egypt’s non-bank financial services provider, finished the year with a 34.9-percent revenue increase from EGP23.31 billion ($1.48 billion)in 2020 to EGP31.44 billion ($2 billion) in 2021.

The high revenue growth driven by a 67.3-percent rise in revenue produced from local passenger vehicle sales from EGP7.7 billion ($489.9 million) in 2020 to EGP12.88 billion ($819.4 million) in 2021, as well as a 26.3-percent increase in revenue generated from motorcycle and three-wheeler sales.

Its lending division (GB Capital) and Commercial Vehicles & Construction Equipment division both showed outstanding financial results in 2021, with sales growing by 22.1 percent and 36.8 percent, respectively.

While commenting on the financial performance, GB Auto CEO Nader Ghabbour said the full-year results were driven by the group’s automotive sectors, which capitalized on the growing customer demand for mobility.

“Our Auto & Auto-Related division, which effectively capitalized on increased customer demand with an improved product suite and streamlined pricing strategy, drove solid full-year results,” he said.

“Our Passenger Car LoB managed the semiconductor crisis to generate excellent results and continues to profit from the popularity of the newest additions to its range, Changan and Haval cars,” he added, remarking on the impact of the global chip shortfall on its operations.

Ghabbour launched GB Auto in 1985 as an Egyptian producer of automobiles, buses, lorries and motorbikes. Since then, the firm has expanded into the Middle East and North Africa’s leading car assembler and distributor. The affluent Ghabbour family owns 62.9 percent of the business.

As of press time on Mar. 1, shares in the group were trading at EGP5.76 ($0.3664), unchanged from their opening price on the Egyptian stock exchange this morning, giving the firm EGP6.3 billion ($401 million).