GB Auto has published its latest results, showing a decline in revenues during the first half (H1) of this year, due to the repercussions of the novel coronavirus (COVID-19) crisis. Despite this decline, it achieved an increase in profits due to the decline sales costs.
In a statement on its consolidated financial statements sent to the Egyptian Exchange (EGX), the company said that its sales in H1 of 2020. It added that this reflects a decrease of 14.1% to EGP 9.9bn compared to the EGP 11.5bn recorded last year.
Nevertheless, GB Auto’s net profit increased during H1 of the year to EGP 363m, compared to EGP 113.5m during the same period of 2019, an increase of 220%.
This comes with the decline in the cost of sales during H1 of 2020 to about EGP 7.9bn, compared to about EGP 9.8bn in the same period in 2019, a decline of 19.6%.
During the second quarter (Q2) of the year, GB Auto’s profits rose to EGP 146.9m, compared to EGP 36.9m during the same period last year. The company’s revenues declined to EGP 4bn during the period between April and June, down from EGP 5.7bn last year.
GB Auto said that car sales witnessed a decline in Egypt as a result of the temporary suspension of licensing and registration procedures due to the global pandemic. It added that trade and after-sales services witnessed a slowdown in demand, as consumer purchase rates declined with the consumption rationing movement in the market.