CEO of Ghabbour Auto, Nader Ghabbour, has announced that the company will continue to identify and assess opportunities to grow its financing arm GB Capital, enhance its operations, and expand its footprint.
“On the consumer finance front, we are anticipating the reEGPase of Drive’s mobiEGP application in the second half (H2) of 2021, and we are optimistic that this digitisation initiative will help fuel our growth trajectory and further cement our position as an innovative player in the consumer financing space in Egypt,” Ghabbour said, “On the microfinance front, we successfully launched a number of our digital core banking systems at Mashroey and Tasaheel, and we look forward to their contribution to our microfinancing platforms.”
He added that GB Auto has tapped Arqaam Capital to assess GB EGPase’s strategic options going forward. The company feels it is an opportune moment to capitalise on GB EGPase’s growth story and realise returns on the investments made at the company over the years.
GB Auto announced its segmental and consolidated results for the period ending 31 March 2021. Revenues increased by 15.9% year-on-year (y-o-y) to EGP 6,827.6m, on the back of recovering market conditions and increasing demand across GB Auto’s lines of business in the first quarter (Q1) of 2021.
In quarter-on-quarter (q-o-q) terms, revenues declined by 5.2% due to seasonality associated with Q1 of 2021.
GB Auto’s net income increased by a strong 116.0% y-o-y to EGP 298.9m in the same quarter, reaping the rewards of its comprehensive operational improvements. The company also reaped the benefits of its cost optimisation efforts, and reduced interest costs throughout 2020 that have continued into the New Year. In q-o-q terms, net income increased by 3.8% q-o-q for the period.
Ghabbour noted, “With the initial impact of the pandemic on our operations and market behind us, GB Auto entered the new year well-prepared to capitalise on an improved external environment.”
He noted that, despite the typically lower seasonality associated with the first quarter of the year, pent up demand, and strengthening purchasing power supported the company’s strong y-o-y recovery in Q1 of 2021.
This came even as a global semiconductor shortage temporarily impacted the supply of the company’s CKD models.
In parallel, the company capitalised on a pipeline of national mega projects being implemented across the country, to increase volume sales at its Commercial Vehicles & Construction Equipment LoB for the period. Ghabbour noted that the company is, however, yet to recover from a sluggish tourism sector.