GB Auto, led by the Egyptian Ghabbour family, hits historic $344-million profit mark

Feyisayo Ajayi -

GB Auto, a Cairo-based automaker led by the family of the late Egyptian auto tycoon Raouf Ghabbour, achieved a record-breaking profit of EGP 10.5 billion ($344 million) at the end of its 2022 fiscal year.

Despite experiencing a single-digit 5.2-percent decrease in revenue during the review period, the group’s profit skyrocketed by an astounding 496 percent, surging from EGP 1.77 billion ($57.8 million) in 2021 to EGP 10.54 billion ($344.2 million) in 2022.

The remarkable surge in profit by triple digits can be directly attributed to two key factors: the sale of GB Lease, the group’s leasing business, and its 7.5-percent stake in MNT-Halan, a prominent fintech firm led by Egyptian entrepreneur Mounir Nakhla.

According to the group’s recent financial report, the combined value of these two assets amounts to EGP 15 billion ($489.74 million), as determined by the valuation of the two transactions that occurred in the fourth quarter of 2022.

This highlights the substantial value creation and significant untapped potential at GB Capital, which is one of the group’s operating subsidiaries.

Established in 1985 by the late Egyptian auto mogul Raouf Ghabbour, GB Auto has grown under his guidance to become one of the leading automobile distributors and assemblers in the Middle East and North Africa.

In line with its strategy to solidify its leadership position across various sectors, the Cairo-based automaker, owned by the family of the late Egyptian auto mogul, announced earlier this year its plans to rebrand to “GB Corp.”

This strategic move aims to enhance the company’s reputation and further expand its already significant presence in the market.

During the announcement of the new brand identity for the group, Nader Ghabbour, the CEO of GB Auto, revealed that the company’s new identity strategy focuses on two main pillars: digital transformation and sustainable development.

As an industry leader under the control of the Egyptian Ghabbour family, GB Auto has grown significantly over the years.

Presently, the Ghabbour family’s 62.9-percent stake in the company is valued at nearly $125 million, making them one of the wealthiest investors on the Egyptian Exchange.