Led by Tunisia’s Ben Yedder family, Ennakl Automobiles’ revenue slumps below $22 million in H1 2022

Ennakl Automobiles, a Tunis-based automobile company led by the Tunisian Ben Yedder family, has reported an 18-percent decrease in revenue at the end of the first half of its 2022 fiscal year, owing to the persistence of global automobile production disruptions.

Ennakl is a Tunisian automotive retailer that sells Volkswagen, Audi, Seat, and Porsche vehicles. It is led by the wealthy Ben Yedder family, who own a majority 53.3-percent stake in the company.

According to data from the group’s activity indicators for the second quarter of 2022, its revenue decreased by 18 percent during the first half of 2022, from MAD274.2 million ($26.7 million) to MAD224.66 million ($21.9 million).

The group explained that the revenue decline was due to supply and logistics issues caused by a global shortage of automotive components, particularly semiconductors, which impacted automakers’ operations.

The shortage of automotive components resulted in a slowdown in production lines and a significant increase in transportation costs.

Ennakl spent a total of MAD1.78 million ($173,715) on operations and added 27 workers to its work force for the distribution of the new Renault Trucks brand as part of a move to put the group’s revenue and earnings power on the path of sustainable growth.

On the Casablanca bourse, investors sold down stakes in the automotive retailer in response to the revenue figures, resulting in a 1.36-percent drop in the company’s shares to a price of MAD31.25 ($3.04) at the time of writing this report.

At the current price, the market capitalization of Ennakl Automobiles is MAD937.5 million ($91.3 million), while the market value of the Ben Yedder family’s 53.3-percent stake in the vehicle retailer is MAD499.7 million ($48.7 million).

As a leading retailer in the Tunisian automotive industry, Ennakl under the leadership of Abdellatif Hmam competes for market share in Tunisia alongside significant brands such as Automobile Reseau Tunisien et Services and Auto Hall S.A.