Ghabbour Auto (GB) released on Monday its segmental and consolidated results for the second quarter (2Q) and first half (1H) of 2022, recording revenues that were flat q-o-q and yet increased 7.8% y-o-y to EGP 7.8m in 2Q22 despite the challenging operating conditions.
These figures reflect the resilient consumer demand and improved pricing strategies across GB’s business lines.
Net profits increased by 113.7% q-o-q due to a significant FX loss impacting 1Q 2022 and by 31.3% y-o-y to EGP 490.5m, as the company continues to benefit from its comprehensive operational efficiency initiatives, as well as operational leverage from higher revenues.
On a YTD basis, revenues grew by 11.2% y-o-y to EGP 15.6m and net income increased by 7.1% y-o-y to EGP 719.9m in 1H 2022.
“Our performance in 2Q 2022 was supported by strong demand for our products and service offerings as well as prudent strategies to steer us through an increasingly challenging operating environment,” said GB CEO Nader Ghabbour.
“We started off the year on stronger footing with increased levels of inventory to hedge against rising shipping costs, supply chain challenges, and the global semiconductor shortage; challenges that were further exacerbated by the devaluation of the EGP in March 2022 and restrictions on imports.”
“Nonetheless, the Auto & Auto-Related segment’s optimised product portfolio and enhanced pricing strategy continued to support our operations and drove GB’s y-o-y growth in 2022,” he added.
“Challenging conditions are likely to persist for a number of quarters; however, we are confident in our ability to effectively respond to changing dynamics and carry forward with our growth targets once the economic situation improves,” he asserted.
GB Capital recorded a revenue increase of 18.7% q-o-q and 27.2% y-o-y to EGP 2.3m in 2Q 2022, as strong demand positively impacted the company’s subsidiaries. On a YTD basis, revenues grew by 21.4% y-o-y to EGP 4.3m in 1H 2022. G
Meanwhile, GB Capital’s loans/receivables portfolio expanded by 2.4% q-o-q and 16.3% y-o-y to EGP 16.1bn in 2022.
At its bottom line, GB Capital’s net profits grew by 127.1% q-o-q and 92.8% y-o-y to EGP 276.9m in 2022. On a YTD basis, GB Capital’s net profit expanded 50.8% y-o-y to reach EGP 398.8m in 1H 2022. It is worth noting that performance was positively impacted by securitisation earnings at Tasaheel.
“GB Capital — our financing businesses — recorded a noteworthy performance in 2Q 2022 in a particularly challenging operating environment. The segment capitalised on strong demand for its product and services suite to achieve portfolio growth and deliver on multiple operational initiatives,” said Ghabbour.
“At GB Auto Rental — previously known as Haram Tourism Transport — we continued to add vehicles to our fleet and are on track to hit our target for 2022. We are also excited to finalise prospect deals that will support our leasing operations and secure a solid pipeline at GB Lease and GB Auto Rental in the coming periods.”
“On the digital front, Drive’s consumer finance app Forsa is gaining strong momentum since its launch in 4Q 2021. Moreover, Drive was the first consumer finance company to issue a bond valued at EGP 700m,” he added.
“Finally, MNT-Halan’s trailblazing buy-now-pay-later digital consumer finance product has shown significant growth over the quarter, further strengthening our position in the fintech space. We are well positioned to continue delivering on our digital growth strategy moving forward, leveraging our position in the fintech market and bringing innovative solutions to the financing space,” he concluded.