The wealthy Ghabbour family of Egypt is set to receive EGP240.8 million ($13.16 million) in dividends from their shareholding in Ghabbour Auto (GB Auto), as the Egyptian automobile manufacturer moves to reward shareholders with dividend payments.
The $13.1-million dividend that the family will receive will be paid from the group’s retained earnings of EGP547.4 million ($29.9 million) as part of the cash distribution approved by the board of directors.
Ghabbour founded GB Auto, an Egyptian manufacturer of automobiles, buses, lorries and motorcycles, in 1985. Since its inception, the group has grown to become the leading car assembler and distributor in the Middle East and North Africa.
The wealthy Ghabbour family holds a majority 62.9-percent stake in the leading auto manufacturer.
At the end of 2021, 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 group ended the year with a revenue increase of 34.9 percent, from EGP23.31 billion ($1.48 billion) in 2020 to EGP31.44 billion ($2 billion) in 2021.
The high revenue growth was driven by a 67.3-percent increase in revenue from local passenger vehicle sales, which increased 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 from the motorcycle and three-wheeler sales.
As a result of the strong financial performance, the board has agreed to reward shareholders with a cash dividend distribution of EGP382.9 million ($20.92 million) or EGP0.35 ($0.0191) per share.
As a result of their combined stake in the premier carpet manufacturer, the wealthy Ghabbour family will receive a total dividend distribution of EGP240.8 million ($13.16 million).
