Table of Contents
Ghabbour Auto (GB Auto), an Egyptian automobile manufacturer led by one of the country’s top businessmen, Raouf Ghabbour, reported a profit of EGP229.4 million ($12.4 million) in the first quarter of 2022, as earnings remained significantly lower than last year’s levels despite double-digit revenue growth.
According to the Egyptian automobile manufacturer’s earnings release, its net profit fell by 23.2 percent in the first quarter of 2022, from EGP298.8 million ($16.15 million) in the same period in 2021 to EGP229.4 million ($12.4 million), despite a 14.9-percent increase in revenue from EGP6.83 billion ($369.2 million) to EGP7.84 billion ($423.8 million).
A minority interest deduction of EGP136.2 million ($7.36 million), combined with an increase in operating expenses related to marketing and distribution, as well as administrative expenses incurred during daily operations, significantly impacted the group’s earnings.
In his remarks on the group’s financial performance, GB Auto CEO Nader Ghabbour revealed that the group’s performance in the first quarter of the year was characterized by inflationary pressures and supply chain disruptions, demonstrating the company’s resilience in the face of an increasingly challenging operating environment.
“We are aware of the difficult times that lie ahead. “We are confident, however, that our prudent strategies will allow us to best respond to developments and maintain our growth momentum,” Ghabbour said.
Raouf Ghabbour founded GB Auto, an Egyptian manufacturer of automobiles, buses, lorries, and motorcycles, in 1985. It is one of the leading car assemblers and distributors in the Middle East and North Africa.
The wealthy Ghabbour family, represented by Raouf and Nader Ghabbour, owns 62.9 percent of the leading automaker.
In 2021, the group’s net profit increased 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 increased consumer demand across all of the group’s business lines.
Earlier this year, GB Auto announced plans to establish a joint venture to assemble and distribute passenger vehicles in Kenya, the largest economy in East Africa.
